Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands): Mondelez HersheyNet property, plant, and equipment $10,010,000 $1,674,071Current liabilities 14,873,000 1,471,110Long-term debt 15,574,000 1,530,967Other long-term liabilities 12,816,000 716,013Stockholders’ equity 32,215,000 1,036,749a. Determine the ratio of liabilities to stockholders’ equity for both companies. Round to one decimal place.b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.c. Interpret the ratio differences between the two companies.

Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands): Mondelez HersheyNet property, plant, and equipment $10,010,000 $1,674,071Current liabilities 14,873,000 1,471,110Long-term debt 15,574,000 1,530,967Other long-term liabilities 12,816,000 716,013Stockholders’ equity 32,215,000 1,036,749a. Determine the ratio of liabilities to stockholders’ equity for both companies. Round to one decimal place.b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.c. Interpret the ratio differences between the two companies.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 26E

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