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Hasbro Mattel Liabilities: $ 1,064,647 $ 1,645,572 Current liabilities Long-term debt 1,547,115 1,800,000 Other liabilities 404,883 473,863 $ 3,016,645 $ 3,919,435 Total liabilities Stockholders' equity: $ 104,847 $ 441,369 Common stock Additional paid in capital Retained earnings 893,630 1,789,870 3,852,321 3,745,815 Accumulated other comprehensive loss and other equity items Treasury stock, at cost Total stockholders' equity (146,001) (848,899) (3,040,895) (2,494,901) $ 1,663,902 $ 4,680,547 $ 2,633,254 $ 6,522,689 Total liabilities and stockholders'equity The income from operations and interest expense from the income statement for each company were as follows (in thousands): Hasbro Mattel Income from operations (before income tax) $603,915 $463,915 97,122 Interest expense 85,270

Hasbro Mattel Liabilities: $ 1,064,647 $ 1,645,572 Current liabilities Long-term debt 1,547,115 1,800,000 Other liabilities 404,883 473,863 $ 3,016,645 $ 3,919,435 Total liabilities Stockholders' equity: $ 104,847 $ 441,369 Common stock Additional paid in capital Retained earnings 893,630 1,789,870 3,852,321 3,745,815 Accumulated other comprehensive loss and other equity items Treasury stock, at cost Total stockholders' equity (146,001) (848,899) (3,040,895) (2,494,901) $ 1,663,902 $ 4,680,547 $ 2,633,254 $ 6,522,689 Total liabilities and stockholders'equity The income from operations and interest expense from the income statement for each company were as follows (in thousands): Hasbro Mattel Income from operations (before income tax) $603,915 $463,915 97,122 Interest expense 85,270

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):

Please see  the attachment for details:

a. Determine the ratio of liabilities to stockholders’ equity for both companies. Round to
one decimal place.
b. Determine the times interest earned ratio for both companies. Round to one decimal
place.
c. Interpret the ratio differences between the two companies.

Hasbro Mattel Liabilities: $ 1,064,647 $ 1,645,572 Current liabilities Long-term debt 1,547,115 1,800,000 Other liabilities 404,883 473,863 $ 3,016,645 $ 3,919,435 Total liabilities Stockholders' equity: $ 104,847 $ 441,369 Common stock Additional paid in capital Retained earnings 893,630 1,789,870 3,852,321 3,745,815 Accumulated other comprehensive loss and other equity items Treasury stock, at cost Total stockholders' equity (146,001) (848,899) (3,040,895) (2,494,901) $ 1,663,902 $ 4,680,547 $ 2,633,254 $ 6,522,689 Total liabilities and stockholders'equity The income from operations and interest expense from the income statement for each company were as follows (in thousands):
Transcribed Image Text:Hasbro Mattel Liabilities: $ 1,064,647 $ 1,645,572 Current liabilities Long-term debt 1,547,115 1,800,000 Other liabilities 404,883 473,863 $ 3,016,645 $ 3,919,435 Total liabilities Stockholders' equity: $ 104,847 $ 441,369 Common stock Additional paid in capital Retained earnings 893,630 1,789,870 3,852,321 3,745,815 Accumulated other comprehensive loss and other equity items Treasury stock, at cost Total stockholders' equity (146,001) (848,899) (3,040,895) (2,494,901) $ 1,663,902 $ 4,680,547 $ 2,633,254 $ 6,522,689 Total liabilities and stockholders'equity The income from operations and interest expense from the income statement for each company were as follows (in thousands):
Hasbro Mattel Income from operations (before income tax) $603,915 $463,915 97,122 Interest expense 85,270
Transcribed Image Text:Hasbro Mattel Income from operations (before income tax) $603,915 $463,915 97,122 Interest expense 85,270
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