Question: Refer to the financial statement data for Hasbro in Problem 4.24 in Chapter 4 (PROVIDED BELOW) and provide all the ratios for year 4 in
Refer to the financial statement data for Hasbro in Problem 4.24 in Chapter 4 (PROVIDED BELOW) and provide all the ratios for year 4 in yellow
Year 4 Year 3 Year 2 Revenue to Cash 6.2 7.7 Days Revenue 59.1 47.2 Current Ratio 1.6 1.5 Quick Ratio 1.2 1.1 Op. Cash Flow to Avg. Current Liabs. 0.479 0.548 Days A/R 68 73 Days Inv. 51 68 Days A/P 47 49 Net Days Wkg. Capital 72 91 Liabs. to Assets 0.556 0.621 Liabs. to Equity 1.251 1.639 LTD to LT Capital 0.328 0.418 LTD to Equity 0.489 0.720 Op. Cash Flow to Total Liabs. 0.245 0.238 Interest Coverage 5.6 2.3Exhibit 5.14. Risk Ratios for Hasbro (Problem 5.13) Year 4 Year 3 Year 2 Current ratio 1.6 1.5 Quick ratio 1.2 1.1 Operating cash flow to current liabilities ratio 0.479 0.548 Days accounts receivable outstanding 68 73 Days inventory held 51 68 Days accounts payable outstanding 47 49 Net days of working capital financing needed 72 91 Liabilities to assets ratio 0.556 0.621 Liabilities to shareholders' equity ratio 1.251 1.639 Long-term debt to long-term capital ratio 0.328 0.418 Long-term debt to shareholders' equity ratio 0.489 0.720 Operating cash flow to total liabilities ratio 0.245 0.238 Interest coverage ratio 5.6 2.3Exhibit 4.29. Hasbro Balance Sheets (Amounts in Millions) (Problem 4.24) Year 4 Year 3 Year 2 Year 1 ASSETS Cash $ 725 $ 521 $ 496 $ 233 Accounts receivable 579 607 555 572 Inventories 195 169 190 217 Prepayments 219 212 191 346 Total Current Assets $1,718 $1,509 $1,432 $1,368 Property, plant, and equipment, net 207 200 213 236 Other assets 1,316 1,454 1,498 1,765 Total Assets $3,241 $3,163 $3,143 $3,369 LIABILITIES AND SHARE HOLDERS' EQUITY Accounts payable $ 168 $ 159 $ 166 $ 123 Short-term borrowing 342 24 223 36 Other current liabilities 539 747 578 599 Total Current Liabilities $1,149 $ 930 $ 967 $ 758 Long-term debt 303 687 857 1,166 Other noncurrent liabilities 149 141 128 92 Total Liabilities $1,601 $1,758 $1,952 $2,016 Common stock $ 105 $ 105 $ 105 $ 105 Additional paid-in capital 381 398 458 455 Retained earnings 1,721 1,567 1,430 1,622 Accumulated other comprehensive income (loss) 82 30 (47) (68) Treasury stock (649) (695) (755) (761) Total Shareholders' Equity $1,640 $1,405 $1,191 $1,353 Total Liabilities and Shareholders' Equity $3,241 $3,163 $3,143 $3,369Exhibit 4.30. Hasbro Income Statements (Amounts in Millions) (Problem 4.24) Year 4 Year 3 Year 2 Sales $ 2,998 $ 3,139 $ 2,816 Cost of goods sold (1,252) (1,288) (1,099) Selling and administrative expenses: Advertising (387) (364) (297) Research and development (157) (143) (154) Royalty expense (223) (248) (296) Other selling and administrative (687) (799) (788) Interest expense (32) (53) (78) Income tax expense (64) (69] (29) Net Income $ 196 $ 175 $ 75Exhibit 4.31. Hasbro Statements of Cash Flows (Amounts in Millions) (Problem 4.24) Year 4 Year 3 Year 2 OPERATIONS Net income $ 196 $ 175 $ 75 Depreciation and amortization 146 164 184 Addbacks and subtractions, net 17 68 (67) (Increase) Decrease in accounts receivable 76 (13) 34 (Increase) Decrease in inventories (16) 35 39 (Increase) Decrease in prepayments 29 8 185 Increase (Decrease) in accounts payable and other current liabilities (90) 17 23 Cash Flow from Operations $ 358 $ 454 $ 473 INVESTING Property, plant, and equipment acquired $ (79) $ (63) $ (59) Other investing transactions (6) (2) (3) Cash Flow from Investing $ (85) $ (65) $ (62) FINANCING Increase in common stock $ 40 $ 3 Decrease in short-term borrowing (7) (15) Decrease in long-term borrowing (58) (389) (127) Acquisition of common stock - (3) Dividends (37) (21) (21) Other financing transactions 7 9 12 Cash Flow from Financing $ (69) $(364) $(148) Change in Cash $204 $ 25 $ 263 Cash-Beginning of year 521 196 233 Cash-End of Year $725 $ 521 $ 496
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