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, Mondelez International, Inc., and The Hershey Company, is as follows (in thousands): MondelezHersheyNet property, plant, and equipment$8,482,000 $2,130,294 Current liabilities16,737,000 2,418,566 Long-term debt12,532,000 3,254,280 Other long-term liabilities7,747,000 622,908 Stockholders' equity25,713,000 1,407,266 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place.Mondelezfill in the blank 1Hersheyfill in the blank 2b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round your answers to one decimal place.Mondelezfill in the blank 3Hersheyfill in the blank 4c. Although___________uses more debt, it has____________creditor protection and borrowing capacity.

Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

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 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___________uses more debt, it has____________creditor protection and borrowing capacity.

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