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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): Santa Fe Madrid
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 | $461,160 | $422,730 | ||
Current liabilities | 171,081 | 307,552 | ||
Long-term debt | 487,512 | 338,184 | ||
Other long-term liabilities | 171,288 | 131,516 | ||
Stockholders' equity | 212,790 | 185,060 |
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 uses more debt, it has creditor protection and borrowing capacity.
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