Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 14, Problem 15E
a)
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.
To compute: Ratio of liabilities to
Given info: Total liabilities and Stockholders’ equity
b)
To determine
To compute: Ratio of fixed assets to long-term liabilities
Given info: Total fixed assets and long-term liabilities.
c)
To determine
To interpret: The ratio differences between the two companies.
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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
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 Hershey uses more debt, it has slightly stronger creditor protection and…
Ratio of Labilities 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. (MDLZ), and The Hershey Company (HSY), is as follows (in
thousands):
Mondelez
Hershey
Net property, plant, and equipment
$8,229,000
$2,177,248
Current labilities
14,417,000
1,909,443
Long-term debt
13,217,000
2,347,455
Other long-term liabilities
8,689,000
439,748
Stockholders' equity
25,215,000
827,687
a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Mondelez
1.4 V
Hershey
3.10 x
b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.
Mondelez
0.4 V
Hershey
0.8V
c. Although Hershey v uses more debt, it has slightly stronger v creditor protection and borrowing capacity.
Chapter 14 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 14 - Prob. 1DQCh. 14 - What is the advantage of using comparative...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - What do the following data, taken from a...Ch. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 1BECh. 14 - Prob. 2BECh. 14 - Prob. 3BECh. 14 - Prob. 4BECh. 14 - Prob. 5BECh. 14 - Prob. 6BECh. 14 - Prob. 7BECh. 14 - Prob. 8BECh. 14 - Prob. 9BECh. 14 - Prob. 10BECh. 14 - Prob. 11BECh. 14 - Prob. 1ECh. 14 - Prob. 2ECh. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7ECh. 14 - Current position analysis The bond indenture for...Ch. 14 - Prob. 9ECh. 14 - Accounts receivable analysis Xavier Stores Company...Ch. 14 - Prob. 11ECh. 14 - Prob. 12ECh. 14 - Ratio of liabilities to stockholders equity and...Ch. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Prob. 17ECh. 14 - Prob. 18ECh. 14 - Prob. 19ECh. 14 - Prob. 20ECh. 14 - Prob. 21ECh. 14 - Prob. 22ECh. 14 - Prob. 23ECh. 14 - Prob. 24ECh. 14 - Prob. 25ECh. 14 - Comprehensive income Anson Industries, Inc.,...Ch. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Measures of liquidity, solvency, and profitability...Ch. 14 - Prob. 5PACh. 14 - Prob. 1PBCh. 14 - Prob. 2PBCh. 14 - Prob. 3PBCh. 14 - Prob. 4PBCh. 14 - Prob. 5PBCh. 14 - Prob. 1FSACh. 14 - Prob. 1ADMCh. 14 - Prob. 2ADMCh. 14 - Prob. 3ADMCh. 14 - Prob. 1TIFCh. 14 - Prob. 3TIF
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