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	$743,280		$574,700
Current liabilities	331,320		466,878
Long-term debt	687,534		413,784
Other long-term liabilities	241,566		160,916
Stockholders' equity	300,100		226,430

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 uses more debt, it has creditor protection and borrowing capacity.