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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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