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Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: E. 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? Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 $ 14,146,700$ -8,449,100 $ 13,566,400 -8,131,300 Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation $ $ -999,320$ -982,160 $ -1,498,980$ -1,473,240 EBIT $ 2,979,700 Interest expense $ 3,199,300 $ -375,000 $ -1,093,300 $ -356,100 Taxes $ -1,041,500 Net income $ $ 1,731,000 $ 1,582,100 Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 2013 LIABILITIES 2014 2013 Current assets Current liabilities Cash $ 191,000 $ $ 1,455,100 Investments $ 182,300 $ $ 1,545,700 $ 311,500 $ 1,857,200 $ 332,600 Accounts receivable $ 188,900|Accounts payable 121,800 Short-term debt 630,400 Total current liabilities 563,600 Long-term liabilities 1,504,700 Debt $ 669,400 $ 587,500 $ 1,787,700 Inventory $ Total current assets $ 1,630,200 $ $ $ 8,658,400 $ 1,462,100 $ 7,934,400 1,345,100 Long-term assets Other liabilities $ Investments $ 3,052,000 $ 2,827,900 Total liabilities $ 11,977,700/$ 11,067,200 $ 8,498,900 8,481,500 OWNERS' EQUITY Plant, property, and equipment Goodwill $ 349,000 $ $ 1,453,400 Intangible assets $ $ 1,159,300 $ 348,700|Common stock 956,700 Retained earnings Total owners' equity $ 1,457,900 $ 1,253,800 $ 2,711,700 $ 1,598,900 $ 3,052,300 TOTAL LIABILITIES TOTAL ASSETS $ 14,689,400 $ 14,119,500 AND OWNERS' EQUITY $ 14,689,400 $ 14,119,500

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