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Using the financial statements for the fiscal year 2015 you will analyze the performance of each toy company individually and also compare the performance of

Using the financial statements for the fiscal year 2015 you will analyze the performance of each toy company individually and also compare the performance of the two companies against each other. You will perform your analyses by answering the 13 questions on page 2.

Answers to the 13 questions must be provided on pages 3 and 4 and submitted by the due date. Show all calculations for your answers on an attachment to your answer sheets. No partial credit can be awarded without supporting calculations. A copy of both companys Balance Sheet and Income Statement must also be attached to your answer sheet. Highlight or circle all figures on the statements that you use to answer the questions.

For each of the two companies, acquire their 10-K (annual) reports for fiscal year 2015 from the SEC website (www.sec.gov).

Click on the heading Filings - then click on Company Filings Search,

In the second box, under the heading Fast Search, enter the companys Central Index Key (CIK) number from below. Then click on the Search button.

Click on the Documents button next to the 10-K for the filing date shown below.

Then click on the red file name for the FORM 10-K.

When the Annual Report appears, scroll down to the Table of Contents and click on Item 8 - Financial Statements.

Scroll down until you find the Balance Sheet and Income Statement.. Print only the pages with the 2 financial statements. I suggest you do this by first going to Print Preview and entering the page numbers you want. You may have to adjust the page numbers in Print Preview to get the 2 pages that actually contain the financial statements.

Repeat for the other company !!

Companies

CIK Number

10K Filing Date

Hasbro, Inc.

0000046080

02/24/2016

Mattel, Inc.

0000063276

02/25/2016

Solvency

7. Compute each company's Debt ratio for 2015 and 2014. Did the ratio improve or decline for each company? Who had the advantage?

Profitability

8. Compute each company's Net Margin for 2015 and 2014. Did the ratio improve or decline for each company? Who had the advantage?

9. Compute each company's Asset Turnover for only 2015. Which company had the advantage?

10. Compute each company's Return on Investment for 2015. Which company had the advantage?

11. Compute each company's Return on Equity for 2015. Which company had the advantage?

Conclusions

12. From your above analysis, which of the two companies would you prefer to lend money to if you were a bank officer? Briefly explain the basis for your decision giving specific reasons. Be concise! No need for an essay!

Which of the two companies would you prefer to invest your own money in as a stockholder? Briefly explain the basis for your decision giving specific reasons. Again - be concise!

2015

2014

7a) Debt to Asset Ratio - MATTEL

Circle one: Improved Declined

7b) Debt to Asset Ratio - HASBRO

0.639 = 63.9%

0.666 = 66.6%

Circle one: Improved Declined

7c) Debt to Asset Ratio

Company that had the advantage Circle one: MATTEL HASBRO

8a) Net Margin - MATTEL

Circle one: Improved Declined

8b) Net Margin - HASBRO

0.101 = 10.1%

Circle one: Improved Declined

8c) Net Margin

Company that had the advantage Circle one: MATTEL HASBRO

9a) Asset Turnover - MATTEL

Company that had the advantage Circle one: MATTEL HASBRO

9b) Asset Turnover - HASBRO

0.962 = 96.2%

10a) Return on Investment - MATTEL

Company that had the advantage Circle one: MATTEL HASBRO

10b) Return on Investment - HASBRO

0.097 = 9.7%

11a) Return on Equity - MATTEL

Company that had the advantage Circle one: MATTEL HASBRO

11b) Return on Equity - HASBRO

Name ____________________________________________ AC 210 Financial Statement Analysis Project (continued)

12) Lend Money to which Company ? Circle one, both or none: MATTEL HASBRO

Brief Explanation:

13) Invest Money in which Company ? Circle one, both or none: MATTEL HASBRO

Brief Explanation:

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