Determine the ratio of liabilities to stockholders equity


Question - Recent balance sheet information for two companies in the food industry, H.J. Heinz Company and The Hershey Company, are as follows (in thousands of dollars):

H.J. Heinz Hershey

Net property, plant, and equipment $1,998,153 $1,651,300

Current liabilities $2,505,106 $1,453,538

Long-term debt $4,413,641 $1,248,128

Other long-term liabilities $1,272,596 $486,473

Stockholders' equity $1,841,683 $683,423

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.

b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to two decimal places.

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Accounting Basics: Determine the ratio of liabilities to stockholders equity
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