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. What was Hasbro's liabilities-to-assets ratio, based on market value of the assets in 2006?

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. What was Hasbro's liabilities-to-assets ratio, based on market value of the assets in 2006?

Quizplus · Accepted Answer

Liabilities-to-assets ratio = total liabilities / total assets
Based on market value of assets, the total assets at the end of 2006 were:
($27.25 per share) x (107,914 shares) = $2,944,205
Liabilities at the end of 2006 were $1,624,992.
Therefore, the liabilities-to-assets ratio is:
$1,624,992 / $2,944,205 x 100% = 55.3%

Below Are 2005 and 2006 Balance Sheets of Hasbro, Inc