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Ratio of Liabilities to Stockholders' Equity and Times Interest Earned Hasbro, Inc., and Mattel, Inc., are the two largest toy companies in North America. Condensed
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned Hasbro, Inc., and Mattel, Inc., 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): Liabilities: Current liabilities Long-term debt Other liabilities Total liabilities Shareholders' equity: Common stock Additional paid in capital Retained earnings Hasbro Mattel $3,475,000 $6,544,000 1,871,600 2,597,000 1,246,200 $5,346,600 $10,387,200 $260,000 $1,169,000 802,000 4,285,000 4,991,000 4,414,000 Accumulated other comprehensive income (loss) and other equity items 57,000 (714,000) Treasury stock, at cost (2,291,000) (2,662,000) Total stockholders' equity $3,819,000 $6,492,000 $9,165,600 $16,879,200 Total liabilities and stockholders' equity The income from operations and interest expense from the income statement for both companies were as follows (in thousands): Hasbro Mattel Income (loss) from operations (before income tax expense) $1,483,360 $3,799,600 Interest expense 101,600 322,000 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place. Hasbro, Inc. Mattel, Inc. b. Determine the times interest earned ratio for both companies. Round your answers to one decimal place. Hasbro, Inc
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