Question
Debt Ratio, Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-term Liabilities Recent balance sheet information for two companies in the
Debt Ratio, Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-term Liabilities
Recent balance sheet information for two companies in the snack food industry, Santa Fe Company and Madrid Company, are as follows:
Santa Fe | Madrid | |||
Net property, plant, and equipment | $381,342 | $ 456,876 | ||
Liabilities: | ||||
Current liabilities | 317,103 | 477,270 | ||
Long-term debt | 723,572 | 444,528 | ||
Other long-term liabilities | 254,228 | 172,872 | ||
Total liabilities | $1,294,903 | $1,094,670 | ||
Stockholders' equity | 315,830 | 243,260 | ||
Total liabilities and stockholders equity | $1,610,733 | $1,337,930 |
a. Determine the debt ratio for both companies. Enter your answers as percent values rounded to one decimal place.
Santa Fe | |
Madrid |
b. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Santa Fe | |
Madrid |
c. Determine the ratio of fixed assets to long-term liabilities for both companies. Enter your answers as decimal values rounded to two decimal places.
Santa Fe | |
Madrid |
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