Recent 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$565,680 $773,920 Current liabilities305,732 747,820 Long-term debt697,672 696,528 Other long-term liabilities245,128 270,872 Stockholders' equity304,520 381,160 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place.Santa Fefill in the blank 1Madridfill in the blank 2b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round your answers to one decimal place.Santa Fefill in the blank 3Madridfill in the blank 4

Ratio of liabilities to stockholders' equity is the measure that tells about the amount of debt an…

Answered: Recent balance sheet information for…

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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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	$565,680		$773,920
Current liabilities	305,732		747,820
Long-term debt	697,672		696,528
Other long-term liabilities	245,128		270,872
Stockholders' equity	304,520		381,160

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place.

Santa Fe	fill in the blank 1
Madrid	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.

Santa Fe	fill in the blank 3
Madrid	fill in the blank 4

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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