Below are 2005 and 2006 balance sheets of Hasbro, Inc. (numbers are in thousands of dollars): The market value of Hasbro's shares was $27.25 a share at the end of 2006 and $20.18 a share at the end of 2005.
-Refer to the information above. Which of the following statements regarding changes in Hasbro's capital structure from 2005 to 2006 is true?

Question

Below are 2005 and 2006 balance sheets of Hasbro, Inc. (numbers are in thousands of dollars):    The market value of Hasbro's shares was $27.25 a share at the end of 2006 and $20.18 a share at the end of 2005.
-Refer to the information above. Which of the following statements regarding changes in Hasbro's capital structure from 2005 to 2006 is true?

Quizplus · Accepted Answer

By comparing the balance sheets of 2005 and 2006, we can see that Hasbro decreased its financial debt by $214,262 ($694,655-$480,393) and increased its non-financial debt by $174,003 ($1,438,988-$1,264,985). This indicates that Hasbro is using less financial debt and more non-financial debt in 2006, making option C the correct choice. Neither option A nor option B is supported by the information provided.

Below Are 2005 and 2006 Balance Sheets of Hasbro, Inc