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
$634,720
$816,800
Current liabilities
257,307
599,208
Long-term debt
587,116
588,096
Other long-term liabilities
206,284
228,704
Stockholders' equity
256,270
321,820
a. Determine the ratio of liabilities to
stockholders' equity for both companies. Round to one decimal
place....