Hasbro, Inc. (HAS), and Mattel, Inc.-(MAT), 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 $1,617,859 $1,505,573 Long-term debt 1,588,067 2,580,439 Total liabilities $3,205,926 $4,086,012 Total stockholders' equity $1,862,736 $2,407,782 Total liabilities and stockholders' equity $5,068,662 $6,493,794 The operating income and interest expense from the income statement for each company were as follows (in thousands): Hasbro Mattel Operating income (before income tax expense) $692,489 $409,472 Interest expense 97,405 95,118 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro Inc. 1.72 X Mattel Inc. 1.7 b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro Inc. 7.11 X Mattel Inc. 4.3 X

Hasbro, Inc. (HAS), and Mattel, Inc.-(MAT), 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 $1,617,859 $1,505,573 Long-term debt 1,588,067 2,580,439 Total liabilities $3,205,926 $4,086,012 Total stockholders' equity $1,862,736 $2,407,782 Total liabilities and stockholders' equity $5,068,662 $6,493,794 The operating income and interest expense from the income statement for each company were as follows (in thousands): Hasbro Mattel Operating income (before income tax expense) $692,489 $409,472 Interest expense 97,405 95,118 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro Inc. 1.72 X Mattel Inc. 1.7 b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro Inc. 7.11 X Mattel Inc. 4.3 X

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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