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 $565,680 $773,920 Current liabilities 305,732 747,820 Long-term debt 697,672 696,528 Other long-term liabilities 245,128 270,872 Stockholders' equity 304,520 381,160 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place. Santa Fe fill in the blank 1 Madrid 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. Santa Fe fill in the blank 3 Madrid fill in the blank 4
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 $565,680 $773,920 Current liabilities 305,732 747,820 Long-term debt 697,672 696,528 Other long-term liabilities 245,128 270,872 Stockholders' equity 304,520 381,160 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place. Santa Fe fill in the blank 1 Madrid 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. Santa Fe fill in the blank 3 Madrid fill in the blank 4
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 | $565,680 | $773,920 | ||
| Current liabilities | 305,732 | 747,820 | ||
| Long-term debt | 697,672 | 696,528 | ||
| Other long-term liabilities | 245,128 | 270,872 | ||
| 304,520 | 381,160 |
a. Determine the ratio of liabilities to stockholders' equity for both companies. Round your answers to one decimal place.
| Santa Fe | fill in the blank 1 |
| Madrid | 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.
| Santa Fe | fill in the blank 3 |
| Madrid | fill in the blank 4 |
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