Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North...
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Accounting
Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), 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):
Hasbro
Mattel
Liabilities:
Current liabilities
$1,617,859
$1,505,573
Long-term debt
1,588,067
2,580,439
Total liabilities
$3,205,926
$4,086,012
Total stockholders equity
$1,862,736
$2,407,782
Total liabilities and stockholders equity
$5,068,662
$6,493,794
The operating income and interest expense from the income statement for each company were as follows (in thousands):
Hasbro
Mattel
Operating income (before income tax expense)
$692,489
$409,472
Interest expense
97,405
95,118
a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Hasbro Inc.
fill in the blank
Mattel Inc.
fill in the blank
b. Determine the times interest earned ratio for both companies. Round to one decimal place.
Hasbro Inc.
fill in the blank
Mattel Inc.
fill in the blank
Answer & Explanation
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