Question

0 Data Table Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,146,387 $ 13,566,833 Cost of goods sold $ -8,448,925 $ -8,131,991 Selling, general, and administrative expenses $ -997,631 $ -980,045 Depreciation $ -1,498,941 $ -1,472,550 EBIT 3,200,890 $ 2,982,247 Interest expense $ -376,887 $ -355,153 Taxes $ -1,073,121 $ -998,296 Net income $ 1,750,882 S 1,628,798 Diabt aliole on the tablo ondoalost Coauto lisboard and then cixbt oliol, tha Print Done

Answer 1

Calculate the financial ratios as follows: А 1 Particular 2 Profit margin 3 Return on assets 4 Return on equity 2013 12.01% 11.54% 37.22% 2014 12.38% 11.92% 42.96% As the ROE in 2014 is 42.96%, company is performing very good. Formulas: 1 Particular 2 Profit margin 3 Return on assets 4 Return on equity 2013 2014 =1628798/13566833 =1750882/14146387 =1628798/14116249 =1750882/14684122 =1628798/4376590 =1750882/4076053 As the ROE in 2014 is 42.96%, company is performing very good.