CALCULATING AND INTERPRETING RISK RATIOS. Refer to the financial statement data for Hasbro in Problem 4.23 in Chapter 4. Exhibit 5.15 presents risk ratios for Hasbro for Year 2 and Year 3.
Required
a. Calculate the amounts of these ratios for Year 4.
b. Assess the changes in the short-term liquidity risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4.
c. Assess the changes in the long-term solvency risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4.
Text Book: Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective By James Wahlen, Stephen Baginski, Mark Bradshaw.