Answer:
Please see answer below
Explanation:
a. Determine the ratio of liabilities to stockholder's equity for both companies
Debt to equity ratio = Total liabilities / Shareholder's equity
• Mondelez
Total liabilities = 14,873,000 + 15,574,000 + 12,816,000
= 43,263,000
Shareholder's equity = 32,215,000
Debt to equity ratio = 43,263,000/32,215,000
= 1.34
• Hershey
Total liabilities = 1,471,110 + 1,530,167 + 716,013
= 3,717,290
Shareholder's equity = 1,036,749
Debt to equity ratio = 3,717,290/1,036,749
= 3.59
b. Determine the ratio of fixed assets to long-term liabilities for both companies
•Ratio of fixed assets to long term liabilities = Fixed assets/Longterm liabilities
•Mondelez
Fixed assets = 10,010,000
Long term liabilities = 15,574,000 + 12,816,000
= 10,010,000/28,390,000
= 0.35
• Hershey
Fixed assets = 1,674,071
Long term liabilities = 1,530,167 + 716,013
= 2,246,180
= 1,530,167/2,246,180
= 0.68
