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4. Use the following selected balance sheet and income statement data for Mattel Inc. (in $ thousands) to compute a) return on equity, b) profit

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4. Use the following selected balance sheet and income statement data for Mattel Inc. (in $ thousands) to compute a) return on equity, b) profit margin (PM), c) asset turnover (AT), and d) financial leverage (FL) for fiscal 2016. Show that ROE = PM x AT * FL. (in thousands) 2016 2015 Net sales $5,456,650 $5,702,613 Operating income 519,233 540,922 Interest expense 95,118 85,270 Net income 318,022 369,416 Total assets 6,493,794 6,535,143 Total liabilities 4,086,012 3,901, 889

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