Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term LiabilitiesRecent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands):Santa FeMadridNet property, plant, and equipment$446,530$740,790Current liabilities186,260571,390Long-term debt472,046592,632Other long-term liabilities165,854230,468Stockholders' equity206,040324,300a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.Santa FeMadridb. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.Santa FeMadridc. Althoughuses more debt, it hascreditor protection and borrowing capacity.PreviousNextCheck My Work 3 more Check My Work uses remaining.

Step 1 The liabilities for the S Company is $824,160. It is determined by adding the current…

Answered: Ratio of Liabilities to Stockholders'…

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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Ratio Analysis Trevor Corporation had $2,900,000 in total liabilities and $4,300,000 in total assets as of December 31. Trevor calculates that 40% of assets are designated as current, while $500,000 of Trevor's total liabilities are long-term. Required: Calculate Trevor's debt to assets ratio and its long-term debt to equity ratio. Round your answers to two decimal places. Debt to Total Assets Long-Term Debt to Total Equity
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $114,240 $102,000Long-term debt 127,200 120,000 Based on this information, what is the amount and percentage of increase or decrease that wouldbe shown on a balance sheet with horizontal analysis?
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets Long-term assets $ 42,529 46,842 Current liabilities Long-term debt Other liabilities Equity $ 29,750 27,757 14,327 17,537 $ 89,371 Total $ 89,371 Total Locust has 662 million shares outstanding with a market price of $88 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the company's market value added. Note: Enter your answers in millions. Market value Market value added million million
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 $501,440 $766,100 405,746 894,020 463,832 551,592 162,968 214,508 Stockholders' equity 202,460 301,840 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place. Santa Fe Net property, plant, and equipment Current liabilities Long-term debt Other long-term liabilities Madrid
Current Position Analysis Sherwood, Inc., the parent company of Tasty snack foods and Super beverages, had the following current assets and current liabilities at the end of two recent years: Current Year(in millions) Previous Year(in millions) Cash and cash equivalents $3,315 $3,531 Short-term investments, at cost 2,355 6,557 Accounts and notes receivable, net 7,485 6,726 Inventories 1,973 1,753 Prepaid expenses and other current assets 658 649 Short-term obligations 351 3,723 Accounts payable 8,419 8,287 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Current Year Previous Year 1. Current ratio fill in the blank 1 fill in the blank 2 2. Quick ratio fill in the blank 3 fill in the blank 4 b. The liquidity of Sherwood has some over this time period. Both the current and quick ratios have . Sherwood is a company with resources for meeting short-term…
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
Given the following information, what is the ratio of liabilities to stockholders’ equity?
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, Mondelez International, Inc., and The Hershey Company, is as follows (in thousands): Mondelez Hershey Net property, plant, and equipment $8,482,000 $2,130,294 Current liabilities 16,737,000 2,418,566 Long-term debt 12,532,000 3,254,280 Other long-term liabilities 7,747,000 622,908 Stockholders' equity 25,713,000 1,407,266 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place. Mondelez fill in the blank 1 Hershey fill in the blank 2 b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round your answers to one decimal place. Mondelez fill in the blank 3 Hershey fill in the blank 4 c. Although Hershey uses more debt, it has slightly stronger creditor protection and…
Please help me with show all calculation thanku
Current assets: Cash and marketable securities Accounts receivable Inventory Total Assets Fixed assets: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Other long-term assets Total Total assets Net sales Less: Cost of goods sold Gross profits Less: Other operating expenses 2024 VALIUM'S MEDICAL SUPPLY CORPORATION Balance Sheet as of December 31, 2024 and 2023 (in millions of dollars) $ 72 187 312 $ 571 Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) 2023 $ 71 181 291 $ 543 $ 1,073 146 $ 927 134 $ 1,061 $ 1,632 $ 1,446 $ 882 113 $ 769 134 $ 903 Liabilities and Equity Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total Long-term debt Stockholders' equity: Preferred stock (6 thousand shares) Common stock and paid-in surplus (100 thousand shares) Retained earnings Total VALIUM'S MEDICAL SUPPLY CORPORATION Income Statement for Years Ending December 31, 2024 and…
Debt and price-earnings ratios The Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW). The following data (in millions) were adapted from recent financial statements of The Home Depot. Year 2 Year 1 Total assets $39,946 $40,518 Total liabilities 30,624 27,996 Total stockholders’ equity 9,322 12,522 Earnings per share $4.74 $3.78 1. Compute the debt ratio for Years 1 and 2. Round to one decimal place. Year 2 Year 1 Debt ratio __________ % __________ % 2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place. Year 2 Year 1 Ratio of stockholders' equity to total assets __________ % __________ % 3. Compute the ratio of liabilities to stockholders' equity. Round to one decimal place. Year 2 Year 1 Ratio of liabilities to stockholders' equity __________ % __________ % 4. A high ratio of…
What is the price earnings ratio for this company? Round your answer to one decimal point. Assets: Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total assets $295,000 Liabilities and Stockholders' Equity Current liabilities 60,000 Long-term liabilities 85,000 Stockholders' equity-common 150,000 Total liabilities and stockholders' equity $295,000 Income Statement Net sales $ 85,000Cost of goods sold…

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