Part 5 - Use the financial statements (Income Statement, Balance Sheet, Statement of Cash Flows, and Shareholders' Equity Statement) to calculate the financial statement ratios and fill in the selected data for the sheet provided. (Download Ratio and Fill in sheet from Project Folder) Exhibit 17-8 Using Ratios in Financial Statement Analysis Ratio Computation Information Provided Evaluating the ability to pay current liabilities: Working capital Current assets - Current liabilities A business's ability to meet its short-term obligations with its current rets. Total current assets The company's ability to pay current Current ratio Total current liabilities abilities from current assets Cash + Cash equivalents The company's ability to pay current Cash ratio Total current liabilities abilities from cash and cash equivalents Cash including cash equivalents + Short-term investments + Net current receivables The company's ability to pay at its current Acid-test ratio Total current liabilities habilities if they came due immediately Exhibit 17-8 Using Ratios in Financial Statement Analysis Evaluating the ability to sell merchandise inventory and collect receivables: Cost of goods sold Inventory tumover Average merchandise inventory Days' sales in 365 days Inventory Inventory turnover Gross profit Gross profit percentage The number of times a company sells its wwerage level of merchandise inventory during a period The average number of days that inventory held by a company The profitability of each sales dollar above the cost of goods sold Net sales revenue Accounts receivable turnover ratio Net Credit sales Average net accounts receivable The number of times the company collects the average receivables balance in a year The number of days' sales takes to collect the average level of receivables Days' sales in receivables 365 days Accounts receivable turnover ratio Ratio Computation Information Provided Evaluating the ability to pay long-term debt: Debt ratio Total liabilities The proportion of assets financed with debt Total assets Debt to equity ratio Total liabilities Total equity The proportion of total liabilities relative to total equity Times-interest-earned Net income + Income tax expense + Interest expense ratio A business's ability to pay interest expense. Interest expense Evaluating profitability: Net income How much net income is earned on every dollar Profit margin ratio Net sales of net sales Rate of return on total Net income + Interest expense The success a company has in using its assets assets Average total assets to earn income Net sales How efficiently a business uses its average total Average total assets assets to generate sales Rate of return on Net income - Preferred dividends The relationship between net income available common stockholders to common stockholders and their average equity Average common stockholders' equity common equity invested in the company. Net income - Preferred dividends Amount of a company's net income (los) for Earnings per share Weighted average number of common shares outstanding each share of its outstanding common stock Asset turnover ratio Exhibit 17-8 Continued Evaluating stock as an investment: Price/earnings ratio Market price per share of common stock Earnings per share Dividend yield Annual dividend per share Market price per share Annual dividend per share Dividend payout Earnings per share The value the stock market places on St of a company's earnings The percentage of a stock's market value that is returned annually as dividends to stockholders Ratio of dividends declared per common share relative to the earnings per share of the company, HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Operations Fiscal Years Ended in December (Thousands of Dollars Except Per Share Data) 2019 2018 2017 $4,720,227 4,579,646 5,209,782 1,807,849 1,850,678 2,033,693 414,549 351,660 405,488 262,156 246,165 269,020 413,676 439,922 501,813 47,259 28,703 28,818 85,585 43,906 35,798 1,037,103 1,287,560 1,124,793 4,068,177 4,248,594 4,399,423 652,050 331,052 810,359 Net revenues. Costs and expenses Cost of sales Royalties ... Product development Advertising Amortization of intangible assets 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 Per common share Net earnings Basic Diluted Cash dividends declared 101,878 (30,107) (13,931) 57,840 594,210 73,756 $ 520,454 90,826 (22,357) (7,819) 60,650 270,402 49,968 220,434 98,268 (22,155) (51,904) 24,209 786,150 389,543 396,607 4.07 1.75 3.17 $ 4.05 1.74 3.12 $ 2.72 2.52 228 HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Fiscal Years Ended in December (Thousands of Dollars) 2019 2018 2017 $ 520.454 220.434 396,607 153528 143-018 109.255 86.253 31303 TO 962 47259 B5.585 (14956) 28.044 (54184) 28.818 35.798 112105 56.032 (440OD 21.450) (4630 18.106 (33.85 62277 (14.550) (19.582) 653,061 28.703 43 906 (109) 27992 (18.879) 180113 37.2 (1929) (131984) 107 426 27.027 (35.21) 645997 (50.376) (25.300 24450 (48.005) (80.460) 181305 (5.65) 724378 Cash flows from operating activities Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation of property, plant and equipme Impairment of goodwill Impairment of intangible assets Pension Settlement Amortization of intangible assets Program production cost amortization Deferred income taxes Stock-based compensation Other non-cash Items Changes in operating assets and abilities, net of acquired and disposed balances (Increase) decrease in accounts receivable Increase in inventories.... Decrease increase) in prepaid expenses and other current assets Program production costs, net of tax rebates received Increase (decrease) in accounts payable and accrued liabilities Net deemed repatriation tax Other, including long-term advances Net cash provided by operating activities Cash flows from investing activities Additions to property, plant and equipment Investments and acquisitions, not of cash acquired Net gains on derivative contracts Other Net cash utilized by investing activities Cash flows from financing activities Net proceeds from borrowings with maturity greater than three months Repayments of borrowings with maturity greater than three months Net repayments of other short-term borrowings Purchases of common stock Stock-based compensation transactions Dividends paid Payments related to tax withholding for share-based compensation Deferred acquisition payments Proceeds from issuance of common stock Deferred financing fees paid Other Net cash provided (utilized) by financing activities Effect of exchange rate changes on cash Increase (decrease in cash and cash equivalents Cash and cash equivalents at beginning of year. Cash and cash equivalents at end of year Supplernental information Interest paid Income taxes paid (133,636) (140.426) 134.877) (8.760 (155,450 79.990 1452 9.400 3.396 (60.955) (286,477) (31481) 2354957 493.878 (350,000) 8.828) (142357) 68.419) (61387) 250.054) SL300 31786 29.999 29.451 (336,604) (309,258) 276 975) (325) (58.344 31994) (100,000) 975.185 C26,653) (4760) 07087 (6 785) 2,870 573 6737100 (312.175 (4.680 23282 18.225 3.397999 (398,863) 298.949 182.37 1581234 $4,580,369 118237 1561234 89.294 5 82. 205 $100.149 82258 17854 115.753 HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interests (Thousands of Dollars) IS 11 IIIIII Accumulated Additional Other Total Redeemable Common Pald-in Retained Comprehensive Treasury Shareholders' Noncontrolling Stock Capital Earnings LOSS Stock Equity Interests Balance, December 25, 2016 $104,847 985,418 4,148.722 (194570) (3,181681) $1862,736 $ 22,704 Net earnings 396,607 396,607 Impact of adoption of ASU 2016-09 916 (697) 219 Acquisition of remaining interest in Backflip 22.704 22,704 (22.704) Other comprehensive loss (44855) (44 855) Stock-based compensation transactions (13,021) (16,001) (29,022) Purchases of common stock (150,054) (150,054) Stock-based compensation expense 54,588 1444 56,032 Dividends declared (284,410) (284410) Balance, December 31, 2017 $104,847 1050,605 4.260,222 (239,425) (3,346,292) $1829,957 Net earnings 220434 220,434 Impact of adoption of ASU 2018-02 21503 (21503) Issuance of shares for Saban purchase. 198853 81,544 280.397 Other comprehensive loss (33.586) (33,586) Stock-based compensation transactions (2.075) (694) (2,769) Purchases of common stock (250,054) (250,054) Stock-based compensation expense... 27,676 216 27,892 Dividends declared (317,785) (317,785) Balance December 30, 2018 $104,847 1275,059 4,184,374 (294,514) (3,515,280) $1754486 Net earnings 520454 520.454 5.296 969,889 Equity issuance, not of foes 975,185 Other comprehensive earnings T10,294 110.294 Stock-based compensation transactions 2,970 15,693 18.663 Purchases of common stock (61387) (61,587) 27,808 236 Stock-based compensation expense... 28044 Dividends declared (350,209) (350.209) Balance December 29, 2019 $ 110,143 2.275.726 4,354,619 (184.220) (3.560,738) $2,995,530 11 IIIIIIIIII 11 HASBRO, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 29, 2019 and December 30, 2018 (Thousands of Dollars Except Share Data) 2019 2018 $ 4580,369 1182.371 1410,597 1,188,052 446,105 443,383 310.450 268,698 6,747.521 3.082,504 382248 256,473 ASSETS Current assets Cash and cash equivalents Accounts receivable less allowance for doubtful accounts of $17200 in 2019 and 59,100 in 2018 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 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings Accounts payable Accrued liabilities Total current liabilities Long-term debt Other liabilities Total liabilities 494584 485.881 646 305 693,842 584 970 744 288 1725,859 1924,00 $ 8,855,628 5.262,988 503 9,740 343.927 333,521 972652 931063 1257.082 1274,324 4,046457 1695,092 556.559 539,086 5,860,098 3.508.502 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 220.286,736 shares as of 2019 and 209,694,630 shares as of 2018 Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost. 83,424,129 shares in 2019 and 83.565,598 shares in 2018 Total shareholders' equity Total liabilities and shareholders' equity 10.143 104,847 2275726 1275,059 4,354619 4184374 (184220) (294,514) (3.560,738) (3.515280) 2.995,530 1754 486 $ 8,855.628 5.262.988 ATTACH COMPUTATION PAGE 2019 Current Year 2018 Previous Yes Trend Unfavorable or Favorable 1. WORKING CAPITAL 2. CURRENT RATIO 3. CASH RATIO 4. ACID TEST RATIO ANVENTORY TURNOVER XOOOK XOO04 DAYS' SALES IN INVENTORY xooox XOOOK Please show all calculations. 7. GROSS PROFIT PERCENTAGE x0001 ACCOUNTS RECEIVABLE TURNOVER RATIO 2. DAYS SALES IN RECENABLES XOOOK 2000x 10. DEBT RATIO 11. DEBT TO EQUITY RATIO 12 TIMES INTEREST EARNED RATIO 11. PROFIT MARGIN RATIO 14. RATE OF RETURN ON TOTAL ASSETS 0001 15. ASSET TURNOVER RATIO XOOOX XO00C 16. RATE OF RETURN ON COMMON STOCKHOLDERS EQUITY XOOOK 2000 ATTACH COMPUTATION PAGE Current Yes Previous Year Trond Unterblog Favorable 20003 17 EARNINGS PER SHARE 11. PRICEEARNINGS RATIO XOOO 11. DIVIDEND YIELD 20. DIVIDEND PAYOUT ATTACH A COMPUTATION PAGE STATEMENT OF CASH FLOWS 10. At the most recent year end, (circle provided by or used for) $ was provided/used by operating activities. $ was provided/used by investing activities. $ was provided/used by financing activities. 11. The primary source of cash was financing) activities. (operating, investing, 12. For the most recent year, what is the primary investing activity (can be positive or negative)? 13. For the most recent year, what is the primary financing activity (can be positive or negative)? 14. This statement of cash flow indicates a (strong/weak) cash position. Why? (don't say because it increased or decreased, be more specific) QUESTIONS & FILL IN PART 5 - 20 POINTS ANSWER THE FOLLOWING QUESTIONS REGARDING YOUR CORPORATION BALANCE SHEET 1. At the most recent year end, how much is reported for: Total current assets? $ Total current liabilities? $ Total retained earnings? $ 2. What are the common shares outstanding for your company? 3. Does your company have preferred stock? (yes or no) 4. How much does your company have in plant assets? S INCOME STATEMENT 5. What is the total revenue(sales) for the current year? 6. What is the net income for the current year? 7. Identify the greatest expense for the current year. 8. This income statement indicates (strong/weak) profitability. Why? 9. Does your company have any discontinued or extraordinary items? (Yes or No)