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Financial ratios: Profitability.

Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?

What is the profit margin for 2014 ________%(Round to two decimal places.)

Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,147,618 $ 13,566,513 Cost of goods sold $ -8,448,129 $ -8,132,738 Selling, general, and administrative expenses $ -998,552 $ -981,996 Depreciation $ -1,498,518 % -1,471,002 EBIT $ 3,202,419 $ 2,980,777 Interest expense $ -375,662 $ -354,407 Taxes $ -1,074,168 $ -998,021 Net income $ 1,752,589 $ 1,628,349 2013 Cash $1,456, 768 $332,033 $1,788,801 Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 2013 LIABILITIE: 2014 Current assets Current liabilities $191,844 $186,172 Accounts $1,545,552 Investments $180,312 $120,343 Short-terr $311,291 Accounts receivable $667,317 $631,681 Total curre $1,856,843 Inventory $588,367 $563,950 Long-term liabilities Total current assets $1,627,840 $1,502,146 Debt $7,286,942 Long-term assets Other liab $1,462,674 Investments $3,054,896 $2,828,783 Total liabi $10,606, 459 Plant, property, and equipment $8,496,402 $8,480,029 OWNERSTM EQUITY Goodwill $348,700 $346,258 Common: $1,457,172 Intangible assets $1,158,403 $956,586 Retained $2,622,610 Total own $4,079,782 TOTAL LIABILITIES TOTAL ASSETS $14,686,241 $14,113,802 AND OWN $14,686,241 $6,603,027 $1,346,578 $9,738,406 $1,454,814 $2,920,582 $4,375, 396 $14,113,802

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