Hasbro, Inc. Consolidated Statements of Operations - USD ($) $ in Thousands 12 Months Ended Dec. 31, 2018 Consolidated Statements of Operations [Abstract] Net revenues, external $ 4,579,646 Costs and expenses Cost of sales 1,850,678 Royalties 351,660 Product development 246,165 Advertising 439,922 Amortization of intangibles 28,703 Program production cost amortization 43,906 Selling, distribution and administration 1,287,560 Total expenses 4,248,594 Operating profit 331,052 Non-operating (income) expense Interest Expense 90,826 Interest income (22,357) Other (income) expense, net (7,819) Total non-operating expense, net 60,650 Earnings before income taxes 270,402 Income taxes 49,968 Net earnings 220,434 Net Loss Attributable to Noncontrolling Interests 0 Net Earnings Attributable to Hasbro, Inc. $ 220,434 Net earnings attributable to Hasbro, Inc. per common share: Basic (in dollars per share) $ 1.75 Diluted (in dollars per share) 1.74 Cash dividends declared (in dollars per share) $ 2.52 Using the above Income Statement calculate the Operating Expense Ratio and show the accoounts used.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
| Hasbro, Inc. Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended |
| Dec. 31, 2018 | |
| Consolidated Statements of Operations [Abstract] | |
| Net revenues, external | $ 4,579,646 |
| Costs and expenses | |
| Cost of sales | 1,850,678 |
| Royalties | 351,660 |
| Product development | 246,165 |
| Advertising | 439,922 |
| Amortization of intangibles | 28,703 |
| Program production cost amortization | 43,906 |
| Selling, distribution and administration | 1,287,560 |
| Total expenses | 4,248,594 |
| Operating profit | 331,052 |
| Non-operating (income) expense | |
| Interest Expense | 90,826 |
| Interest income | (22,357) |
| Other (income) expense, net | (7,819) |
| Total non-operating expense, net | 60,650 |
| Earnings before income taxes | 270,402 |
| Income taxes | 49,968 |
| Net earnings | 220,434 |
| Net Loss Attributable to Noncontrolling Interests | 0 |
| Net Earnings Attributable to Hasbro, Inc. | $ 220,434 |
| Net earnings attributable to Hasbro, Inc. per common share: | |
| Basic (in dollars per share) | $ 1.75 |
| Diluted (in dollars per share) | 1.74 |
| Cash dividends declared (in dollars per share) | $ 2.52 |
Using the above Income Statement calculate the Operating Expense Ratio and show the accoounts used.
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