Question

Financial? ratios: Asset management.??The financial statements for Tyler? Toys, Inc. are shown in the table below.

Calculate the inventory? turnover, days' sales in? inventory, receivables? turnover, days' sales in?receivables, and total asset turnover 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
Revenue	$14,147,668	$13,567,127
Cost of goods sold	$-8,447,974	$-8,132,882
Selling, general, and administrative expenses	$-997,657	$-981,541
Depreciation	$-1,497,219	$-1,471,877
EBIT	$3,204,818	$2,980,827
Interest expense	$-376,961	$-355,597
Taxes	$-1,074,586	$-997,587
Net income	$1,753,271	$1,627,643

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Tyler Toys, Inc.
Balance Sheet as of December 31, 2013 and 2014
ASSETS	2014	2013	LIABILITIES	2014	2013
Current assets			Current liabilities
Cash	$191,711	$186,177	Accounts payable	$1,546,078	$1,456,997
Investments	$181,745	$120,685	Short-term debt	$311,309	$333,339
Accounts receivable	$667,684	$631,784	Total current liabilities	$1,857,387	$1,790,336
Inventory	$587,973	$564,575	Long-term liabilities
Total current assets	$1,629,113	$1,503,221	Debt	$7,285,384	$6,604,121
Long-term assets			Other liabilities	$1,462,839	$1,346,441
Investments	$3,054,714	$2,828,536	Total liabilities	$10,605,610	$9,740,898
Plant, property, and equipment	$8,497,909	$8,480,790	OWNERS’ EQUITY
Goodwill	$347,142	$347,692	Common stock	$1,457,128	$1,454,531
Intangible assets	$1,157,297	$957,840	Retained earnings	$2,623,437	$2,922,650
			Total owners’ equity	$4,080,565	$4,377,181
			TOTAL LIABILITIES
TOTAL ASSETS	$14,686,175	$14,118,079	AND OWNERS’ EQUITY	$14,686,175	$14,118,079

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Answer 1