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

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 20P
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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 $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  
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