Question: 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

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 (in thousands):

Mattel Hasbro S 905,873 Current liabilities $1,582,520 Long-term debt Other liabilities 494,917

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

635,714 304,676 Total liabilities $1,400,790 $2,522,910 Shareholders' equity: S 104,847 $ 441,369

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.

Mattel Hasbro S 905,873 Current liabilities $1,582,520 Long-term debt Other liabilities 494,917 635,714 304,676 Total liabilities $1,400,790 $2,522,910 Shareholders' equity: S 104,847 $ 441,369 Common stock Additional paid in capital Retained earnings Accumulated other comprehensive loss and other equity items Treasury stock, at cost Total stockholders' equity Total liabilities and stockholder's equity 322,254 1,613,307 1,652,140 2,020,348 11,186 (920,475) (276,861) (996,981) $1,538,160 $2,938,950 $2,432,974 $4,955,884

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