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Ruto of Liabilities to Stockholders' Equity and Number of Times Interest Earned Hasbro, Inc. and Mattel, Inc., are the two largest toy companies in North

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Ruto of Liabilities to Stockholders' Equity and Number of Times Interest Earned Hasbro, Inc. and Mattel, Inc., are the two largest toy companies in North America. Condensed abilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in thousands): Hasbro Current liabilities Current liabilities $960,435 Long-term debt $1,716,012 1,396,421 Deferred liabilities 1,100,000 461,152 643,729 Total liabilities $2,818,000 $3,459.741 Shareholders' equity: Common stock $104,847 $441,369 Additional paid in capital 655.943 1,727,682 Retained earnings 3,354,545 3,515,181 Accumulated other comprehensive loss and other equity (72,307) (454,486) Treasury stock, at cost (3,535,649) (2,152,702) Total stockholders' equity $1,507,379 $3,067,044 Total liabilities and stockholders' equity $4,325,387 The income from operations and interest expense from the income statement for each company were as follows a thousands Hasbro Mattel Income from operations (before income tax) $453.402 $945,045 Interest expense 117.403 88,935 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one dedmal place, Hasbro Inc. Mattel Inc. b. Determine the number of times interest charges are earned for both companies. Round to be decimal place Hasbro Inc. Previous Next > Check My Work b. Determine the number of times interest charges are earned for both companies. Round to one decimal place. Hasbro Inc. Mattel Inc. c. Together, these ratios indicate that earnings are to make interest payments. With that said, Mattel does provide creditors with a margin of safety than Hasbro

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