Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands):                                                                            Mondelez          HersheyNet property, plant, and equipment                  $10,010,000      $1,674,071Current liabilities                                                 14,873,000         1,471,110Long-term debt                                                   15,574,000          1,530,967Other long-term liabilities                                    12,816,000           716,013Stockholders’ equity                                             32,215,000         1,036,749a. 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 one decimal place.c. Interpret the ratio differences between the two companies.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
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Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands):
                                                                            Mondelez          Hershey
Net property, plant, and equipment                  $10,010,000      $1,674,071
Current liabilities                                                 14,873,000         1,471,110
Long-term debt                                                   15,574,000          1,530,967
Other long-term liabilities                                    12,816,000           716,013
Stockholders’ equity                                             32,215,000         1,036,749
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 one decimal place.
c. Interpret the ratio differences between the two companies.

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