5.13 Calculating and Interpreting Risk Ratios. Refer to the financial statement ULU Chapter 4. Exhibit 5.14 presents risk ratios for Hasbro for Year 2 and Year 3. REQUIRED a) Calculate these ratios for Year 4. b) Assess the changes in the short-term liquidity risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4. c) Assess the changes in the long-term solvency risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4. Exhibit 4.30 Hasbro Balance Sheets (amounts in millions) (Problem 4.24) Year 4 Year 3 Year 2 Year 1 $ 496 555 ASSETS Cash Accounts receivable Inventories Prepayments Total Current Assets $ 725 579 195 219 $1,718 $ 521 607 169 212 $1,509 190 $ 233 572 217 346 $1,368 191 $1.432 207 1,316 $3,241 200 1,454 213 1,498 $3,143 236 1,765 $3,369 $3,163 $ 159 $ 24 166 223 578 747 $ 930 687 $ 967 Property, plant, and equipment, net Other assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Short-term borrowing Other current liabilities Total Current Liabilities Long-term debt Other noncurrent liabilities Total Liabilities Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 168 342 639 $1,149 303 149 $1,601 $ 105 381 1,721 82 141 $123 36 599 $ 758 1,166 92 $2,016 $ 105 455 857 128 $1,952 $ 105 458 1,430 (47) $1,758 $ 105 398 1,567 30 1,622 (68) 1695 (649) $1,640 $3,241 $1,405 $3,163 (755) $1,191 $3,143 (761) $1,353 $3,369