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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 ) :
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 $ $
Current liabilities
Longterm debt
Other longterm liabilities
Stockholders' equity
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
Madrid fill in the blank
b Determine the ratio of fixed assets to longterm liabilities for both companies. Round your answers to one decimal place.
Santa Fe fill in the blank
Madrid fill in the blank
c Although
uses more debt, it has
creditor protection and borrowing capacity.
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