Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders equity from a recent balance
Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), 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 (in thousands):
Hasbro | Mattel | ||||
Liabilities: | |||||
Current liabilities | $1,617,859 | $1,505,573 | |||
Long-term debt | 1,588,067 | 2,580,439 | |||
Total liabilities | $3,205,926 | $4,086,012 | |||
Total stockholders equity | $1,862,736 | $2,407,782 | |||
Total liabilities and stockholders equity | $5,068,662 | $6,493,794 |
The operating income and interest expense from the income statement for each company were as follows (in thousands):
Hasbro | Mattel | |||
Operating income (before income tax expense) | $692,489 | $409,472 | ||
Interest expense | 97,405 | 95,118 |
a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Hasbro Inc. | fill in the blank |
Mattel Inc. | fill in the blank |
b. Determine the times interest earned ratio for both companies. Round to one decimal place.
Hasbro Inc. | fill in the blank |
Mattel Inc. | fill in the blank |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started