Recent balance sheet information for two companies in the food industry, Santa Fe Company and...
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Accounting
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 $513,870 $437,220 Current liabilities 498,872 605,237 Long-term debt 543,234 349,776 Other long-term liabilities 190,866 136,024 Stockholders' equity 237,110 191,410 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 Madrid uses more debt, it has slightly stronger creditor protection and borrowing capacity
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