Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 16, Problem 15E
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):
- a. 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.
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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):
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Santa Fe
Madrid
Net property, plant, and equipment
$625,380
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$573,480
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Current liabilities
289,737
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492,570
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Long-term debt
661,116
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458,784
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Other long-term liabilities
232,284
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178,416
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Stockholders' equity
288,570
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251,060
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a. Â Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Santa Fe
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Madrid
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b. Â Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.
Santa Fe
Â
Madrid
Recent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands):
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Santa Fe
Madrid
Net property, plant, and equipment
$565,680
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$773,920
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Current liabilities
305,732
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747,820
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Long-term debt
697,672
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696,528
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Other long-term liabilities
245,128
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270,872
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Stockholders' equity
304,520
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381,160
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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
The following financial information is taken from the balance sheets of the Peter Company and the Paul Company:
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Peter
Paul
Current assets
$200,000
$50,000
Current liabilities
40,000
20,000
Calculate the current ratio for each company.Round answers to two decimal places, when appropriate.Peter Company AnswerPaul Company Answer
Which firm has a higher level of liquidity?
Chapter 16 Solutions
Managerial Accounting
Ch. 16 - Prob. 1DQCh. 16 - What is the advantage of using comparative...Ch. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - What do the following data, taken from a...Ch. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - The dividend yield of Suburban Propane Partners,...Ch. 16 - Prob. 10DQ
Ch. 16 - Prob. 1BECh. 16 - Prob. 2BECh. 16 - The following items are reported on a companys...Ch. 16 - Prob. 4BECh. 16 - Prob. 5BECh. 16 - Prob. 6BECh. 16 - Prob. 7BECh. 16 - Prob. 8BECh. 16 - Prob. 9BECh. 16 - Prob. 10BECh. 16 - Prob. 11BECh. 16 - Prob. 1ECh. 16 - The following comparative income statement (in...Ch. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Prob. 5ECh. 16 - The following data were taken from the balance...Ch. 16 - PepsiCo, Inc. (PEP), the parent company of...Ch. 16 - Current position analysis The bond indenture for...Ch. 16 - Prob. 9ECh. 16 - Accounts receivable analysis Xavier Stores Company...Ch. 16 - Prob. 11ECh. 16 - Prob. 12ECh. 16 - Ratio of liabilities to stockholders equity and...Ch. 16 - Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are...Ch. 16 - Recent balance sheet information for two companies...Ch. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Comprehensive income Anson Industries, Inc.,...Ch. 16 - Prob. 1PACh. 16 - Prob. 2PACh. 16 - Prob. 3PACh. 16 - Measures of liquidity, solvency, and profitability...Ch. 16 - Prob. 5PACh. 16 - Prob. 1PBCh. 16 - Prob. 2PBCh. 16 - Prob. 3PBCh. 16 - Prob. 4PBCh. 16 - Prob. 5PBCh. 16 - Prob. 1MADCh. 16 - Prob. 2MADCh. 16 - Deere Company (DE) manufactures and distributes...Ch. 16 - Marriott International, Inc. (MAR), and Hyatt...Ch. 16 - Prob. 1TIFCh. 16 - Real-world annual report The financial statements...Ch. 16 - Prob. 3TIF
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