Refer to the financial state- ment data for Hasbro in Problem 4.24 in Chapter 4. 5.14 presents risk ratios for Hasbro for Year 2 and Year 3.

REQUIRED

1. Calculate these ratios for Year 4.

2. 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.

3. 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 5.14 Risk Ratios for Hasbro (Problem 5.13) Year 4 Year 3 Year 2 1.5 1.1 0.548 1.6 1.2 0.479 68 51 47 72 73 Current ratio Quick ratio Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed Liabilities to assets ratio Liabilities to shareholders' equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Operating cash flow to total liabilities ratio Interest coverage ratio 68 49 0.556 1.251 0.328 0.489 0.245 5.6 91 0.621 1.639 0.418 0.720 0.238 2.3