10. 11. Compute each company's Return on Investment for 2015. Which company had the advantage? Compute each company's Return on Equity for 2015. Which company had the advantage? Conclusions 12. From your above analysis, which of the two companies would you prefer to lend money to if you were a bank officer? Briefly explain the basis for your decision giving specific reasons. Be concise! No need for an essay! 13. Which of the two companies would you prefer to invest your own money in as a stockholder? Briefly explain the basis for your decision giving specific reasons. Again - be concise! Company that had the advantage - Circle one: MATTEL HASBRO 10a) Return on Investment - MATTEL 10b) Return on Investment - HASBRO 11a) Return on Equity - MATTEL 11b) Return on Equity - HASBRO Company that had the advantage - Circle one: MATTEL HASBRO MATTEL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, December 31, 2015 2014 (In thousands, except share data) ASSETS Current Assets Cash and equivalents $ 892,814 $ 971,650 Accounts receivable, net of allowances of $24.4 million and $26.3 million in 2015 and 2014, respectively 1,145,099 1,094,452 Inventories 587,521 561,755 Prepaid expenses and other current assets 571,429 559,074 Total current assets 3,196,863 3,186,931 Noncurrent Assets Property, plant, and equipment, net 741,147 737,869 Goodwill 1,384,520 1,392.925 Other noncurrent assets 1,230,159 1,404,258 Total Assets $ 6,552.689 $ 6,721,983 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short-term borrowings 16,914 $ Current portion of long-term debt 300,000 Accounts payable 651,681 430,259 Accrued liabilities 658,225 639,844 Income taxes payable 18,752 18,783 Total current liabilities 1,645,572 1,088.886 Noncurrent Liabilities Long-term debt 1,800,000 2,100,000 Other noncurrent liabilities 473,863 584,026 Total noncurrent liabilities 2,273,863 2,684.026 Commitments and Contingencies (See Note 11) Stockholders' Equity Common stock $1.00 par value, 1.0 billion shares authorized; 441.4 million shares issued 441,369 441,369 Additional paid-in capital 1,789,870 1,767,096 Treasury stock at cost: 101.7 million shares and 103.3 million shares in 2015 and 2014, respectively (2,494,901) (2,533,566) Retained earnings 3,745,815 3,896,261 Accumulated other comprehensive loss (848,899) (622,089) Total stockholders' equity 2,633,254 2,949,071 Total Liabilities and Stockholders' Equity $ 6,552,689 $ 6,721,983 Tamiravate yal naxt MATTEL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS $ Net Sales Cost of sales Gross Profit Advertising and promotion expenses Other selling and administrative expenses Operating Income Interest expense Interest income) Other non-operating (income), net Income Before Income Taxes Provision for income taxes Net Income For the Year 2015 2014 2013 (In thousands, except per share amounts) 5,702,613 $ 6,023,819 $ 6,484,892 2,896,255 3,022,797 3,006,009 2,806,358 3,001,022 3 ,478,883 717,852 733,243 750,205 1,547,584 1,614,065 1,560,575 540,922 653,714 1,168,103 85,270 79,271 78,505 (7.230) (7,382) (5.555) (1,033) (5.085) (3,975) 463,915 586,910 1,099,128 94,499 195.184 369,416 $ 498,874 $ 903,944 $ HASBRO, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 27, 2015 and December 28, 2014 (Thousands of Dollars Except Share Data) 2015 2014 $ 976,750 893,167 ASSETS Current assets Cash and cash equivalents Accounts receivable, less allowance for doubtful accounts of $14,900 in 2015 and $15,900 in 2014 Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Other assets Goodwill Other intangibles, net Other Total other assets Total assets 1,217,850 384,492 286,506 2,865,598 237,527 1,094,673 339,572 316,093 2,643,505 237,489 592,695 280,807 744,090 1,617,592 $ 4,720,717 593,438 324,528 719,140 1,637,106 4,518,100 252,481 212,549 606,654 1,071,684 1,545,853 392.169 3,009,706 42,730 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $ 164,563 Accounts payable 241,210 Accrued liabilities 658,874 Total current liabilities 1,064,647 Long-term debt 1,547,115 Other liabilities 404,883 Total liabilities 3,016,645 Redeemable noncontrolling interests 40,170 Shareholders' equity Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued Common stock of $0.50 par value. Authorized 600,000,000 shares; issued 209,694,630 shares in 2015 and 2014 104,847 Additional paid-in capital 893,630 Retained earnings 3,852,321 Accumulated other comprehensive loss (146,001) Treasury stock, at cost, 84,899,200 shares in 2015 and 85,168,478 shares in 2014 (3,040,895) Total shareholders' equity 1,663,902 Total liabilities, redeemable noncontrolling interests and shareholders' equity $ 4,720,717 104,847 806,265 3,630,072 (95,454) (2,980,066 1,465,664 4,318,100 HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Operations Fiscal Years Ended in December (Thousands of Dollars Except Per Share Data) 2015 2014 $4,447,5094,277,207 2013 4,082,157 Net revenues Costs and expenses Cost of sales Royalties Product development Advertising Amortization of intangibles Program production cost amortization Selling, distribution and administration Total expenses Operating profit Non-operating (income) expense Interest expense Interest income Other (income) expense, net Total non-operating expense, net Earnings before income taxes Income taxes Net earnings 1,677,033 379,245 242,944 409,388 43,722 42,449 960,795 3,755,576 691,933 1,698,372 305,317 222,556 420.256 52,708 47,086 895,537 3,641,832 635,375 1,672,901 338,919 207,591 398,098 78,186 47,690 871,679 3,615,064 467,093 97,122 (3,145) (5.959) 88,018 603,915 157,043 446,872 93,098 (3.759) 6,048 95.387 539,988 126,678 413,310 105,585 (4.925) 14,611 115,271 351,822 67,894 283,928