Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands): Santa Fe Madrid Net property, plant, and equipment $522,620 $761,760 Current liabilities 218,000 587,564 Long-term debt 552,484 609,408 Other long-term liabilities 194,116 236,992 Stockholders' equity 241,150 333,480 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Santa Fe Madrid b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place. Santa Fe Madrid c. Although uses more debt, it has creditor protection and borrowing capacity.

Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands): Santa Fe Madrid Net property, plant, and equipment $522,620 $761,760 Current liabilities 218,000 587,564 Long-term debt 552,484 609,408 Other long-term liabilities 194,116 236,992 Stockholders' equity 241,150 333,480 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place. Santa Fe Madrid b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place. Santa Fe Madrid c. Although uses more debt, it has creditor protection and borrowing capacity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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