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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):

		Hasbro	Mattel
Current liabilities		$960,435	$1,716,012
Long-term debt		1,396,421	1,100,000
Deferred liabilities		461,152	643,729
	Total liabilities	$2,818,008	$3,459,741
Shareholders' equity:
	Common stock	$104,847	$441,369
	Additional paid in capital	655,943	1,727,682
	Retained earnings	3,354,545	3,515,181
	Accumulated other comprehensive loss and other equity items	(72,307)	(464,486)
Treasury stock, at cost		(2,535,649)	(2,152,702)
Total stockholders' equity		$1,507,379	$3,067,044
Total liabilities and stockholders' equity		$4,325,387	$6,526,785

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

	Hasbro	Mattel
Income from operations (before income tax)	$453,402	$945,045
Interest expense	117,403	88,835

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.

Hasbro Inc.	[removed][removed]
Mattel Inc.	[removed][removed]

b. Determine the number of times interest charges are earned for both companies. Round to one decimal place.

Hasbro Inc.	[removed][removed]
Mattel Inc.	[removed][removed]

10 years ago
07.12.2015
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