Financial? ratios: Profitability. The financialstatements for Tyler? Toys, Inc. are shown below. Calculate theprofit? margin, return on? assets, and return on equity for 2013and 2014 for Tyler Toys. Should any of these ratios or the changein a ratio warrant concern for the managers of Tyler Toys or the?shareholders?

Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and2014
	2014	2013
Revenue	$14,147,036	$13,566,155
Cost of goods sold	$-8,447,557	$-8,131,158
Selling, general, and administrative expenses	$-997,273	$-980,121
Depreciation	$-1,498,746	$-1,472,768
EBIT	$3,203,460	$2,982,108
Interest expense	$-376,332	$-355,167
Taxes	$-1,074,309	$-998,238
Net income	$1,752,819	$1,628,703

??????????????????????????????????????????????????????????????????????????????????????????????????????????

Tyler Toys, Inc.
Balance Sheet as of December 31, 2013 and2014
ASSETS	2014	2013	LIABILITIES	2014	2013
Current assets			Current liabilities
Cash	$190,940	$187,570	Accounts payable	$1,545,880	$1,455,686
Investments	$181,149	$121,240	Short-term debt	$312,342	$333,103
Accounts receivable	$668,147	$630,715	Total current liabilities	$1,858,222	$1,788,789
Inventory	$588,466	$564,327	Long-term liabilities
Total current assets	$1,628,702	$1,503,852	Debt	$7,285,512	$6,604,056
Long-term assets			Other liabilities	$1,463,963	$1,345,334
Investments	$3,053,227	$2,827,600	Total liabilities	$10,607,697	$9,738,179
Plant, property, and equipment	$8,497,215	$8,481,174	OWNERS’ EQUITY
Goodwill	$348,708	$346,172	Common stock	$1,457,797	$1,454,890
Intangible assets	$1,158,090	$957,807	Retained earnings	$2,620,448	$2,923,536
			Total owners’ equity	$4,078,245	$4,378,426
			TOTAL LIABILITIES
TOTAL ASSETS	$14,685,942	$14,116,605	AND OWNERS’ EQUITY	$14,685,942	$14,116,605

What is the profit margin for? 2014? _________ ?(Round to twodecimal? places.)

What is the profit margin for? 2013? ________ ?(Round to twodecimal? places.)

What is the return on assets for? 2014? ________ ?(Round to twodecimal? places.)

What is the return on assets for? 2013? _______ ?(Round to twodecimal? places.)

What is the return on equity for? 2014? ________ (Round to twodecimal? places.)

What is the return on equity for? 2013? ________ ?(Round to twodecimal? places.)

Should any of these ratios or the change in a ratio warrantconcern for the managers of Tyler Toys or the? shareholders??(Select the best? response.)

A.These ratios indicate a somewhat strong firm performance forthe equity holders with an ROE of over 43.01 % for 2014.

B.These ratios indicate a somewhat weak firm performance for theequity holders with an ROE of over 43.01 % for 2013.

C.These ratios indicate a somewhat weak firm performance for theequity holders with an ROE of over 43.01 % for 2014.

D.These ratios indicate a somewhat strong firm performance forthe equity holders with an ROE of over 43.01 % for 2013.