Hasbro 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:

The income from operations and interest expense from the income statement for both companies were as follows:

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
b. Determine the number of times interest charges are earned for both companies. Round to one decimal place.
c. Interpret the ratio differences between the twocompanies.

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Hasbro Mattel, Inc. $1,148,611,000 302,698,000 149,627,000 Current liabilities 1,727,171,000 Long-term debt Deferred liabilities 400,000,000 243,509,000 Total liabilities 600,936 Shareholders' equity: Common stock, $0.50 par value Additional paid-in capital Retained earnings Accumulated other comprehensive loss 104,847,000 380,745,000 1,721,209,000 441,369,000 1,594,332,000 1,093,288,000 and other equity items 82,290,000 (649,367,000) $1,639,724,000 $3,240,660,000 (269,828,000 (473,349,000) 2,385,812,000 $4,756,492,000 Treasury stock, at cost Total stockholders' equity Total liabilities and stockholders' equity Hasbro Mattel, Inc. Income from operations 293,012,000 730,817,000 77,764,000 Interest expense 31,698,000