Hasbro, Inc. (HAS) and Mattel, Inc. (MAT) are the two largest toy companies in North America. Condensed

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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):

The operating income and interest expense from the income statement for each company were as follows (in thousands):

a. Determine the ratio of liabilities to stockholders’ equity for both companies.
b. Determine the times interest earned ratio for both companies.
c. Interpret the ratio differences between the two companies.

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Financial And Managerial Accounting

ISBN: 9780357714041

16th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

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