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, Santa Fe Company and Madrid Company, is as follows (in thousands):

	Santa Fe		Madrid
Net property, plant, and equipment	$359,450		$763,650
Current liabilities	249,456		823,050
Long-term debt	379,990		610,920
Other long-term liabilities	133,510		237,580
Stockholders' equity	165,860		334,310

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round 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 to one decimal place.

Santa Fe	fill in the blank 3
Madrid	fill in the blank 4

c. Although

Santa FeMadridMadrid

uses more debt, it has

slightly strongerslightly weakerslightly stronger

creditor protection and borrowing capacity.