Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. To compute: Ratio of liabilities to stockholders’ equity Given info: Total liabilities and Stockholders’ equity

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Answer 1

Question

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

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Ratio of Liabilities to Stockholders' Equity and Times Interest Earned 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 $1,951,000 $3,482,000 Long-term debt 1,050,200 1,382,000 Other liabilities _ 663,600 Total liabilities $3,001,200 $5,527,600 Shareholders' equity: Common stock $170,000 $765,000 Additional paid in capital 525,000 2,806,000 Retained earnings 3,269,000 2,892,000 Accumulated other comprehensive income (loss) and other equity items 38,000 (468,000) Treasury stock, at cost (1,501,000) (1,743,000) Total stockholders' equity $2,501,000 $4,252,000 Total liabilities and stockholders' equity $5,502,200 $9,779,600 The income…

Ratio of Liabilities to Stockholders' Equity and Times Interest Earned 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 $2,788,000 $5,359,000 Long-term debt 1,500,800 2,127,000 Other liabilities _ 1,020,400 Total liabilities $4,288,800 $8,506,400 Shareholders' equity: Common stock $243,000 $1,094,000 Additional paid in capital 751,000 4,010,000 Retained earnings 4,670,000 4,131,000 Accumulated other comprehensive income (loss) and other equity items 54,000 (668,000) Treasury stock, at cost (2,144,000) (2,491,000) Total stockholders' equity $3,574,000 $6,076,000 Total liabilities and stockholders' equity $7,862,800 $14,582,400 The…

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 V 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

Answer 2

Question

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Answer 6

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

Answer 7

Chapter 14, Problem 14.14EX

a)

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

Answer 8

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

Answer 9

b)

To determine

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

Answer 10

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Answer 11

C)

To determine

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 14 - Briefly explain the difference between liquidity,...Ch. 14 - What is the advantage of using comparative...Ch. 14 - Prob. 3DQ Ch. 14 - How would the current and quick ratios of a...Ch. 14 - Prob. 5DQ Ch. 14 - What do the following data, taken from a...Ch. 14 - A. How does the rate earned on total assets differ...Ch. 14 - Kroger, a grocery store, recently had a...Ch. 14 - Prob. 9DQ Ch. 14 - Prob. 10DQ

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. To compute: Ratio of liabilities to stockholders’ equity Given info: Total liabilities and Stockholders’ equity

Solution Summary: The author calculates the ratio of liabilities to stockholders' equity for Company H and M.

Videos

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Want to see the full answer?

Chapter 14 Solutions

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. To compute: Ratio of liabilities to stockholders’ equity Given info: Total liabilities and Stockholders’ equity

Solution Summary: The author calculates the ratio of liabilities to stockholders' equity for Company H and M.

Videos

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. To compute: Ratio of liabilities to stockholders’ equity Given info: Total liabilities and Stockholders’ equity

To compute: Times interest earned ratio Given info: Income before income tax and interest expense.

To provide: Conclusion about company’s ability to meet its currently maturing debt.

Want to see the full answer?

Chapter 14 Solutions

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To compute: Ratio of liabilities to stockholders’ equity

Given info: Total liabilities and Stockholders’ equity

To compute: Times interest earned ratio

Given info: Income before income tax and interest expense.