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:

The income from operations and interest expense from the income statement for both companies were as follows:

a. Determine the ratio of liabilities to stockholders€™ equity for both companies. Round to two digits after the decimal place.
b. Determine the number of times interest charges are earned for both companies. Round to two digits after the decimal place.
c. Interpret the ratio differences between the twocompanies.

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Hasbro Inc. Mattel Inc. Current liabilities Long-term debt Deferred liabilities s 758,591,000 1,165,649,000 1,596,981,000 1,020,919,000 184,203,000 91,875,000 52/016,115,000 $2 802103 Total liabilities Shareholders' equity Common stock, $0.50 par value Additional paid-in capital Retained earnings Accumulated other comprehensive loss s 104,847000 436,307,000 1,638,993,000 132,900,000 457,544,000 1,622,402,000 and other equity items (71,394,000) (760,535,000) (307,798,000) (161,944,000) Treasury stock, at cost Total stockholders' equity Total liabilities and stockholders' equity 1,738,458,000 3,368,979,000 4,540,561,000 Hasbro Inc. Mattel Inc. Income from operations 96,199,000 $430,010,000 155,132,000 Interest expense 103,688,000