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$625,380 $573,480 Current liabilities289,737 492,570 Long-term debt661,116 458,784 Other long-term liabilities232,284 178,416 Stockholders' equity288,570 251,060 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

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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	$625,380		$573,480
Current liabilities	289,737		492,570
Long-term debt	661,116		458,784
Other long-term liabilities	232,284		178,416
Stockholders' equity	288,570		251,060

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

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