. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro, Inc. fill in the blank 1 Mattel, Inc. fill in the blank 2 b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro, Inc. fill in the blank 3 Mattel, Inc. fill in the blank 4
. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Hasbro, Inc. fill in the blank 1 Mattel, Inc. fill in the blank 2 b. Determine the times interest earned ratio for both companies. Round to one decimal place. Hasbro, Inc. fill in the blank 3 Mattel, Inc. fill in the blank 4
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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Ratio of Liabilities to
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 | |||
|
3,269,000 | 2,892,000 | |||
Accumulated other comprehensive | |||||
income (loss) and other equity items | 38,000 | (468,000) | |||
|
(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 from operations and interest expense from the income statement for both companies were as follows (in thousands):
Hasbro | Mattel | |||
Income from operations (before income tax) | $644,100 | $1,714,000 | ||
Interest expense | 57,000 | 171,400 |
a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Hasbro, Inc. | fill in the blank 1 |
Mattel, Inc. | fill in the blank 2 |
b. Determine the times interest earned ratio for both companies. Round to one decimal place.
Hasbro, Inc. | fill in the blank 3 |
Mattel, Inc. | fill in the blank 4 |
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