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 $446,530 $740,790 Current liabilities 186,260 571,390 Long-term debt 472,046 592,632 Other long-term liabilities 165,854 230,468 Stockholders' equity 206,040 324,300 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. Previous Next Check My Work 3 more Check My Work uses remaining.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
$446,530
$740,790
Current liabilities
186,260
571,390
Long-term debt
472,046
592,632
Other long-term liabilities
165,854
230,468
Stockholders' equity
206,040
324,300
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.
Previous
Next
Check My Work 3 more Check My Work uses remaining.
Transcribed Image Text: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 $446,530 $740,790 Current liabilities 186,260 571,390 Long-term debt 472,046 592,632 Other long-term liabilities 165,854 230,468 Stockholders' equity 206,040 324,300 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. Previous Next Check My Work 3 more Check My Work uses remaining.
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