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. From 2005 to 2006, Hasbro's financial debt

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. From 2005 to 2006, Hasbro's financial debt

Quizplus · Accepted Answer

To calculate the change in financial debt from 2005 to 2006, we need to find the difference between the financial debt amounts in the two years. Financial debt in 2005 was $192,817 and in 2006 it was $155,251. Therefore, financial debt decreased by $37,566. Financial debt can be calculated by subtracting the total equity from the total liabilities. From 2005 to 2006, the total liabilities decreased from $1,220,065 to $1,117,267, a decrease of $102,798. However, the total equity increased from $1,171,377 to $1,346,272, an increase of $174,895. Therefore, the financial debt decreased by $102,798 - $174,895 = -$72,097. Since the debt decreased, the answer choices must be negative. The closest answer choice is C, which is the negative of the actual change in debt. Therefore, the answer is C.

Below Are 2005 and 2006 Balance Sheets of Hasbro, Inc