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Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands) Hasbro Mattel Liabilities: Current liabilities $2,628,000 $4,663,000 Long-term debt 1,415,000 1,850,000 Other liabilities 888,800 Total liabilities $4,043,000 $7,401,800 Shareholders' equity: Common stock $211,000 $952,000 Additional paid in capital 653,000 3,489,000 Retained earnings 4,065,000 3,596,000 Accumulated other comprehensive income (loss) and other equity items 47,000 (582,000) Treasury stock, at cost (1,866,000) (2,168,000) Total stockholders' equity $3,110,000 $5,287,000 Total liabilities and stockholders' equity $7,153,000 $12,688,800 The income from operations and interest expense from the income statement for both companies were as follows (in thousands): Hasbro Mattel Income from operations $975,360 $2,593,350 (before income tax) Interest expense 76,800 229,500 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro, Inc. 12.7 x Mattel, Inc. b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro, Inc. Mattel, Inc. c. Hasbro, Inc. provides a slightly - margin of safety to creditors. Earnings for both companies appear - to make interest payments. 00

Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands) Hasbro Mattel Liabilities: Current liabilities $2,628,000 $4,663,000 Long-term debt 1,415,000 1,850,000 Other liabilities 888,800 Total liabilities $4,043,000 $7,401,800 Shareholders' equity: Common stock $211,000 $952,000 Additional paid in capital 653,000 3,489,000 Retained earnings 4,065,000 3,596,000 Accumulated other comprehensive income (loss) and other equity items 47,000 (582,000) Treasury stock, at cost (1,866,000) (2,168,000) Total stockholders' equity $3,110,000 $5,287,000 Total liabilities and stockholders' equity $7,153,000 $12,688,800 The income from operations and interest expense from the income statement for both companies were as follows (in thousands): Hasbro Mattel Income from operations $975,360 $2,593,350 (before income tax) Interest expense 76,800 229,500 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro, Inc. 12.7 x Mattel, Inc. b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro, Inc. Mattel, Inc. c. Hasbro, Inc. provides a slightly - margin of safety to creditors. Earnings for both companies appear - to make interest payments. 00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands): Hasbro Mattel Liabilities: Current liabilities $2,628,000 $4,663,000 Long-term debt 1,415,000 1,850,000 Other liabilities 888,800 Total liabilities $4,043,000 $7,401,800 Shareholders' equity: Common stock $211,000 $952,000 Additional paid in capital 653,000 3,489,000 Retained earnings 4,065,000 3,596,000 Accumulated other comprehensive income (loss) and other equity items 47,000 (582,000) Treasury stock, at cost (1,866,000) (2,168,000) Total stockholders' equity $3,110,000 $5,287,000 Total liabilities and stockholders' equity $7,153,000 $12,688,800 The income from operations and interest expense from the income statement for both companies were as follows (in thousands): Hasbro Mattel Income from operations $975,360 $2,593,350 (before income tax) Interest expense 76,800 229,500 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro, Inc. 12.7 X Mattel, Inc. b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro, Inc. Mattel, Inc. c. Hasbro, Inc. provides a slightly margin of safety to creditors. Earnings for both companies appear to make interest payments.
Transcribed Image Text:Hasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands): Hasbro Mattel Liabilities: Current liabilities $2,628,000 $4,663,000 Long-term debt 1,415,000 1,850,000 Other liabilities 888,800 Total liabilities $4,043,000 $7,401,800 Shareholders' equity: Common stock $211,000 $952,000 Additional paid in capital 653,000 3,489,000 Retained earnings 4,065,000 3,596,000 Accumulated other comprehensive income (loss) and other equity items 47,000 (582,000) Treasury stock, at cost (1,866,000) (2,168,000) Total stockholders' equity $3,110,000 $5,287,000 Total liabilities and stockholders' equity $7,153,000 $12,688,800 The income from operations and interest expense from the income statement for both companies were as follows (in thousands): Hasbro Mattel Income from operations $975,360 $2,593,350 (before income tax) Interest expense 76,800 229,500 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro, Inc. 12.7 X Mattel, Inc. b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro, Inc. Mattel, Inc. c. Hasbro, Inc. provides a slightly margin of safety to creditors. Earnings for both companies appear to make interest payments.
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