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 Hershey b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round your answers to one decimal place. Mondelez

Managerial Accounting
15th Edition
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Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 15E: Recent balance sheet information for two companies in the food industry, Mondelez International,...
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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
Hershey
b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round your answers to one decimal place.
Mondelez
Hershey
Transcribed Image Text: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 Hershey b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round your answers to one decimal place. Mondelez Hershey
Expert Solution
Required Formulas :

Ratio of Liabilities to Stockholder's Equity :

Total Liabilities / Company's Stockholder's Equity

 

Ratio of Fixed Assets to Long-term Liabilities :

Total Fixed Assets of the Company / Long term Liabilities of the Company

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