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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,
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 $531,600 $695,300 Current liabilities Long-term debt Other long-term liabilities Stockholders' equity 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 c. Although 322,798 647,055 491,730 500,616 172,770 194,684 214,630 273,950 uses more debt, it has creditor protection and borrowing capacity
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