Chapter 14, Question 2 Financial ratios: Liquidity. The financial statements for Tyler Toys, Inc. are shown in the popup window: E. Calculate the current ratio, quick ratio, and cash ratiofor Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?Data TableTyler Toys, Inc.Income Statement for Years Ending December 31, 2013 and 201420142013Revenue$14,147,022 $13,566,022Cost of goods soldSelling, general, andladministrative expenses$-8,448,063 $-8.131.270-998,308 $-981,429Depreciation-1.497.666 s-1,471,762EBIT$3,202,985 $2,981,561Interest expense$-376,465 $-355,115|Таxes-1,074,078 $-998.049Net incomeRight-click on the table and select Copy to Clipboard and then right-click thehighlighted texts in the popup dialogue box and select Copy in order to paste its1,752,442 $1,628,397contents into a spreadsheet.Tyler Toys, Inc.Balance Sheet as of December 31, 2013 and 2014 Balance Sheet as of December 31, 2013 and 2014ASSETS20142013LIABILITIES20142013Current assetsCurrent liabilities186,242 Accounts payableCash191,161 $1,546,263 $1,455,396121,614 Short-term debt$312,469 $InvestmentsAccounts receivableInventory181,755 $333,331668,129 $630,300 Total current liabilities$1,858,732 $1,788,727$588,626 $564,551 Long-term liabilitiesTotal current assets$7,286,061 $$1,462,409 $1,629,671 $1,502,707 Debt6,603,4391,345,835Long-term assetsOther liabilitiesInvestments3,053,730 $2,828,798 Total liabilities$10,607,202 $9,738,001Plant, property, and equipment $8,496,835 $8,480,050 OWNERS' EQUITYGoodwill347,308 $347,684 Common stock1,458,795 $1,453,224956,035 Retained earningsTotal owners' equityIntangible assets1,158,883 $$2,620,430 $2,924,049$4,079,225 $4,377,273TOTAL LIABILITIESTOTAL ASSETS14,686,427| $14,115,274 AND OWNERS' EQUITY$ 14,686,427| $14,115,274%24%24%24%24%24

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Description: Chapter 14, Question 2 Financial ratios: Liquidity. The financial statements for Tyler Toys, Inc. are shown in the popup window: E. Calculate the current ratio, quick ratio, and cash ratiofor Tyler Toys for 2013 and 2014. Should any of these ratios o

Liquidity ratios are a measure of a companies ability to pay its liabilities with the funds…

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Financial ratios: Liquidity. The financial statements for Tyler Toys, Inc. are shown in the popup window: . Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? Data Table Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014

Financial ratios: Liquidity. The financial statements for Tyler Toys, Inc. are shown in the popup window: . Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? Data Table Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.5MCP

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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Chapter 14, Question 2

Balance Sheet as of December 31, 2013 and 2014
ASSETS
2014
2013
LIABILITIES
2014
2013
Current assets
Current liabilities
186,242 Accounts payable
Cash
191,161 $
1,546,263 $
1,455,396
121,614 Short-term debt
$
312,469 $
Investments
Accounts receivable
Inventory
181,755 $
333,331
668,129 $
630,300 Total current liabilities
$
1,858,732 $
1,788,727
$
588,626 $
564,551 Long-term liabilities
Total current assets
$
7,286,061 $
$
1,462,409 $
1,629,671 $
1,502,707 Debt
6,603,439
1,345,835
Long-term assets
Other liabilities
Investments
3,053,730 $
2,828,798 Total liabilities
$
10,607,202 $
9,738,001
Plant, property, and equipment $
8,496,835 $
8,480,050 OWNERS' EQUITY
Goodwill
347,308 $
347,684 Common stock
1,458,795 $
1,453,224
956,035 Retained earnings
Total owners' equity
Intangible assets
1,158,883 $
$
2,620,430 $
2,924,049
$
4,079,225 $
4,377,273
TOTAL LIABILITIES
TOTAL ASSETS
14,686,427| $
14,115,274 AND OWNERS' EQUITY
$ 14,686,427| $
14,115,274
%24
%24
%24
%24
%24

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