Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Hasbro (HAS) and Mattel, Inc. (MAT), are the two largest toy companies in

Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Hasbro (HAS) and Mattel, Inc. (MAT), are the two largest toy companies in North America. Liability and stockholders equity data from recent balance sheets are shown for each company below (in millions): Hasbro Mattel Current liabilities $ 1,065 $ 1,646 Long-term debt 1,952 2,274 Total liabilities $ 3,017 $ 3,920 Total stockholders' equity 1,704 2,633 Total liabilities and stockholders' equity $ 4,721 $ 6,553 The income from operations and interest expense from the income statement for both companies were as follows (in millions): Hasbro Mattel Income from operations before tax $604 $464 Interest expense 97 85 a. Determine the debt ratio for both companies. Round to one decimal place.

b. Determine the ratio of liabilities to stockholders equity for both companies. Round to one decimal place.

c. Determine the times interest earned for both companies. Round to one decimal place.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Pioneers Of A Profession Chartered Accountants To 1879

Authors: Jas. C. Stewart

1st Edition

0367532557, 9780367532550

More Books

Students also viewed these Accounting questions