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 $428,320 $817,800 Current liabilities 104,441 471,040 Long-term debt 396,196 588,816 Other long-term liabilities 139,204 228,984 Stockholders' equity 172,930 322,210 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
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 $428,320 $817,800 Current liabilities 104,441 471,040 Long-term debt 396,196 588,816 Other long-term liabilities 139,204 228,984 Stockholders' equity 172,930 322,210 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Santa Fe | Madrid | |||
| Net property, plant, and equipment | $428,320 | $817,800 | ||
| Current liabilities | 104,441 | 471,040 | ||
| Long-term debt | 396,196 | 588,816 | ||
| Other long-term liabilities | 139,204 | 228,984 | ||
| 172,930 | 322,210 |
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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