diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index a0e402e5e17..38f4cb1928e 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Fixed "rake stats" to work with sub-directories in models and controllers and to report the code to test ration [Scott Baron]
+
 * Added that Active Record associations are now reloaded instead of cleared to work with the new const_missing hook in Active Record.
 
 * Added graceful handling of an inaccessible log file by redirecting output to STDERR with a warning #330 [rainmkr]
diff --git a/railties/fresh_rakefile b/railties/fresh_rakefile
index e9f3afd7ae9..437c9995226 100755
--- a/railties/fresh_rakefile
+++ b/railties/fresh_rakefile
@@ -63,11 +63,11 @@ Rake::RDocTask.new("apidoc") { |rdoc|
 desc "Report code statistics (KLOCs, etc) from the application"
 task :stats do
   CodeStatistics.new(
-    ["Controllers", "app/controllers"], 
     ["Helpers", "app/helpers"], 
+    ["Controllers", "app/controllers"], 
+    ["Functionals", "test/functional"],
     ["Models", "app/models"],
-    ["Units", "test/unit"],
-    ["Functionals", "test/functional"]
+    ["Units", "test/unit"]
   ).to_s
 end
 
@@ -103,4 +103,4 @@ task :purge_test_database do
     `dropdb -U #{ActiveRecord::Base.configurations["test"]["username"]} #{ActiveRecord::Base.configurations["test"]["database"]}`
     `createdb -U #{ActiveRecord::Base.configurations["test"]["username"]}  #{ActiveRecord::Base.configurations["test"]["database"]}`
   end
-end
\ No newline at end of file
+end
diff --git a/railties/lib/code_statistics.rb b/railties/lib/code_statistics.rb
index 53e7feb1c08..825772fcf19 100644
--- a/railties/lib/code_statistics.rb
+++ b/railties/lib/code_statistics.rb
@@ -7,13 +7,15 @@ class CodeStatistics
 
   def to_s
     print_header
-    @statistics.each{ |k, v| print_line(k, v) }
+    @pairs.each { |pair| print_line(pair.first, @statistics[pair.first]) }
     print_splitter
   
     if @total
       print_line("Total", @total)
       print_splitter
     end
+
+    print_code_test_stats
   end
 
   private
@@ -25,6 +27,11 @@ class CodeStatistics
       stats = { "lines" => 0, "codelines" => 0, "classes" => 0, "methods" => 0 }
 
       Dir.foreach(directory) do |file_name| 
+        if File.stat(directory + "/" + file_name).directory? and (/^\./ !~ file_name)
+          newstats = calculate_directory_statistics(directory + "/" + file_name, pattern)
+          stats.each { |k, v| stats[k] += newstats[k] }
+        end
+
         next unless file_name =~ pattern
 
         f = File.open(directory + "/" + file_name)
@@ -46,6 +53,18 @@ class CodeStatistics
       total
     end
 
+    def calculate_code
+      code_loc = 0
+      @statistics.each { |k, v| code_loc += v['codelines'] unless ['Units', 'Functionals'].include? k }
+      code_loc
+    end
+
+    def calculate_tests
+      test_loc = 0
+      @statistics.each { |k, v| test_loc += v['codelines'] if ['Units', 'Functionals'].include? k }
+      test_loc
+    end
+
     def print_header
       print_splitter
       puts "| Name                 | Lines |   LOC | Classes | Methods | M/C | LOC/M |"
@@ -60,7 +79,13 @@ class CodeStatistics
       m_over_c   = (statistics["methods"] / statistics["classes"])   rescue m_over_c = 0
       loc_over_m = (statistics["codelines"] / statistics["methods"]) - 2 rescue loc_over_m = 0
 
-      puts "| #{name.ljust(20)} " +
+      start = if ['Units', 'Functionals'].include? name
+        "|   #{name.ljust(18)} "
+      else
+        "| #{name.ljust(20)} " 
+      end
+
+      puts start + 
            "| #{statistics["lines"].to_s.rjust(5)} " +
            "| #{statistics["codelines"].to_s.rjust(5)} " +
            "| #{statistics["classes"].to_s.rjust(7)} " +
@@ -68,4 +93,12 @@ class CodeStatistics
            "| #{m_over_c.to_s.rjust(3)} " +
            "| #{loc_over_m.to_s.rjust(5)} |"
     end
-end
\ No newline at end of file
+
+    def print_code_test_stats
+      code  = calculate_code
+      tests = calculate_tests
+
+      puts "  Code LOC: #{code}     Test LOC: #{tests}     Code to Test Ratio: #{sprintf("%.1f", code/tests.to_f)}:1"
+      puts ""
+    end
+  end