1. MATTEL, INC. DOUGLASS MOSS ACG2021.001

2. Todays economy is rough, and is sitting at a red light; but Mattel has the green light. After computing various ratios dealing with profitability, liquidity, LT solvency and the Market strengths of the company, one could walk away with the notion that Mattel is growing beautifully. Although the summer season brings worries to the company, it also gives the company time to catch up before the winter season, which includes the holidays; and of course, the holidays are the biggest days for the company’s profit. Mattel is very passionate about the toy industry; thus one of Mattel's core values is “sharing their success with customers, vendors, shareholders & communities." As of now, Mattel's net earnings are $750K, and I can guarantee that after the spring it will have a 33% increase(judging by the previous years analysts) http://files.shareholder.com/downloads/MAT/1026073139x0x36236 4/DE3C1DC8-EDD4-41AD-81E5- 2D8251DB8E5D/Mattel_Annual_Report_As_Printed1.pdf EXECUTIVE SUMMARY

3. PART A. INTRODUCTION Name of chief executive officer Mr. Robert A. Eckert Location of home officeEl Segundo, California Ending date of latest fiscal yearDec 31 Description of the principal products or services that the company providesMattel engages in design, manufucture and marketing of various toy products (worldwide); ranging from fashion dolls &vehichles, to playsets, games, and puzzles. Main geographic area of activityGlobal

4. PART A. AUDIT REPORT.PriceWaterHouseCoopers, LLP Mattel has many plants that not only manufacture the products being sold, but also give people, employees, a chance to grow with the company as well; with the majority of the staff women and over half of all employees only middle schooled educated. Mattel does take immediate action on all problems or events that could cause the company to default, thus the low turnover rate last year is now a high turnover.

5. PART A. STOCK MARKET INFORMATION Most recent price of the company’s stock$23.62 Twelve month trading range of the company’s stock17.63 →24.60 Dividend per share.75 Date of the above information Sept 2010( but not yet audited) Your opinion about the company stock as an investment? BUY, Since the summer the stock in the company has increased

6. Mattel is part of the toy industry, and is leading next to its competitors. It ranks high in status due to its good will & financial investments. Mattel's future plans are irrelevant at this point because the new shareholders see new venues of revenue earnings and are negotiating new terms, present. Mattel also believes in the motto “Play with Passion” “Play Together” “Play Fair” “Play to Grow.” http://corporate.mattel.com/pdfs/Mattel_07GCReport.pdfhttp://corporate.m attel.com/pdfs/2005%20Mattel%20Vendor%20Report.pdfhttp://corporate.m attel.com/pdfs/2005%20Mattel%20Vendor%20Report.pdf PART B. INDUSTRY SITUATION AND COMPANY PLANS

7. Multistep Format Increases in all accounts, thus showing that the company is a healthy growing institute PART C. INCOME STATEMENT

8. Insert a table showing that Assets=Liabilities + Stockholders’ Equity for the past two years. Increases are prominent in all the main accounts (i.e., current assests,“SHE,”etc.), but slowly, more investing in new material is needed. PART C. BALANCE SHEET

9. Are cash flows from operations more or less than net income for the past two years?More than net income for past 2yrs Is the company growing through investing activities, i.e., buying property, plant and equipment and other long lived assets?The company is growing through current investment activities, but might be inneed of investing long term with a new merchandiser What is the company’s primary source of financing, i.e., long-term loans, stock sales?Primary Source of financing→cash balances, short-term borrowing facilities, and issuances of long term debt securites Overall, has cash increased or decreased over the past two years?Definelty increasae to cash over the past two yrs. PART C. STATEMENT OF CASH FLOWS

10. What are the significant accounting policies, if any, relating to revenue recognition, cash, short-term investments, inventories, and property and equipment?N/A List the topics of the notes to the financial statements.Mattel announces the $500 million Aggregote Senior Notes; 250 million bear an annual rate of 4.35% and matures over ten years PART D. ACCOUNTING POLICIES

11. PART E. FINANCIAL ANALYSIS LIQUIDITY RATIOS For the past two years, calculate and comment on: Working Capital$305,053 Current Ratio2.2times Receivable turnover.65 Average days’ sales uncollected562 Inventory turnover Mattel turns 6.45 numbers during the accounting period Average days’ inventory on hand57 days

12. PART E. FINANCIAL ANALYSIS PROFITABILITY RATIOS For the past two years, calculate and comment on: Profit margin11.24%,for every dollar earned, 11.24% profited Asset turnover1.14%Mattel uses assets efficiently because of the high turnover rate Return on assets12.75%Evry dollar invested Mattel earns 12.75% Return on equity27.14%Every dollar shareholders invest they earn 27.14%

13. PART E. FINANCIAL ANALYSIS SOLVENCY RATIO For the past two years, calculate and comment on: Debt to equity28.32%(last years Debt To Equity N/A)The company is invested more by shareholders than banks

14. PART E. FINANCIAL ANALYSIS MARKET STRENGTH RATIOS For the past two years, calculate and comment on: Price/earnings per share$.75 Dividend yield3.20%Mattels current return to investors and stockholders are good because of the 3.20% rate