Determine the ratio of liabilities to stockholders equity

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Reference no: EM131969232

Problem

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 of dollars):

	Santa Fe	Madrid
Net property, plant, and equipment	$331,870	$741,420
Current liabilities	245,611	864,016
Long-term debt	350,834	593,136
Other long-term liabilities	123,266	230,664
Stockholders' equity	153,130	324,580

a. Determine the ratio of liabilities to stockholders' equity for both companies.
b. Determine the ratio of fixed assets to long-term liabilities for both companies.

Reference no: EM131969232

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