Hasbro, Inc. (NASDAQ: HAS) and Mattel, Inc. (NASDAQ: MAT) are two companies in the toy and game industry. Hasbro’s products include Monopoly board games, G.I. Joe dolls, Furby electronic stuffed animals, Transformers mechanical toys, and the My Little Pony toys. Mattel’s products include Fisher Price toys, Barbie dolls, Hot Wheels cars, American Girl dolls, Apples to Apples games, and Blokus games. To follow are selected data for both Hasbro and Mattel from their Form 10-Ks for the years 2012–2016.

For this case, assume that both companies make all purchases on account.

Requirements

1. Calculate accounts payable turnover for both Hasbro and Mattel for 2013 through 2016.

2. Is Hasbro’s accounts payable turnover improving or deteriorating? Explain.

3. Is Mattel’s accounts payable turnover improving or deteriorating? Explain.

4. Describe factors that might be causing the trends in the accounts payable turnover for both companies.

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Hasbro, Inc. Selected financial data from Form 10-K (in thousands) 12/25/2016 12/27/2015 12/28/2014 12/29/2013 12/30/2012 $ 387,675 $ 384,492 $ 339,572 $ 348,794 $ 316,049 212,549 1,698,372 Inventory Accounts payable Cost of sales* (for year) 319,525 1,905,474 241,210 1,677,033 198,799 1,672,901 139,906 1,671,980 Mattel, Inc. Selected financial data from Form 10-K (in thousands) 12/31/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012 $ 613,798 $ 587,521 651,681 664,857 2,896,255 2,902,259 $ 562,047 $ 568,843 $ 465,057 375,328 3,006,009 Inventory Accounts payable Cost of sales* (for year) 385,375 3,011,684 430,259 3,022,797