# Company:  McDonald’s

Company:  McDonald’s
Balance Sheet (p31)
What is the sum of their assets or Owner’s assets? \$31,023,900,000
Total Current Assets – \$4,848,600,000
Total Long Term Assets – \$ 31,023,900,000
What is the sum of their liabilities? \$3,468,300,000 (or Total Current Liabilities)
What is the stockholders’ or owner’s equity? \$2,204,300,000

• If it is in a () or listed a negative, it means it’s being removed from the value. It does not mean it’s a negative number.

What is the Total Liabilities – \$31,023,900,0000
2016 Income Statement (p29)
What was their 2016 profit? \$24,621,900,000
List 3 of their largest expenses:

• Food & Paper
• Payroll & Employee Benefits
• Occupancy & Other Operating Expenses

2016 Cash Flow Statement (p32)
What is their cash flows from operating activities? \$6,059,600,000
What is their cash flows from investing? \$981.600,000
What is their cash flows from financing? \$11,262,400,000
Compute the following ratios for the ’16 and ’15 years, then report the results.  (I’m doing 16 only.)
(If you want, you can list the differences on a chart)
Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities=Current Ratio
\$31,023,900,000/\$3,400,300,000 = 9.12
Quick Ratio: Cash +Receivables/Current Liabilities=Quick Ratio
\$1,223,400,000/\$3,468,300,000 = .35
Asset Management Ratios
Inventory Ratio: Cost of Goods Sold/Inventory=Inventory Turnover
\$16,877,400,000/XXX – Not available  Can be done one the restaurant level

Asset Turnover Ratio: Sales/Total Assets=Asset Turnover
\$24,621,900,000 (p29)/\$31,023,900,000 (p31)= .79

Profitability Ratios
Gross Margin: Gross Profit (or Sales-Cost of goods sold)/Sales x 100=Gross Margin
\$7,744,500,000 (operating income – p29)/\$24,621,900,000 (pg 29) x 100 = 31.45%
Profit Margin: Net Income/Sales x 100 =Return on Sales
\$4,686,500,000 (pg 29)/\$24,621,900,000 (p29)  x 100 = 19%
Return on Equity: Net Income/Owners’ Equity x 100=ROI
2016 – \$4,686,500,000 (pg 29)/-\$2,204,300,000 x 100 = -212%
2016 – \$4,529,300,000 (pg 29)/\$7,087,900,000 x 100 = 63%
Earnings per Share: Net Income/Total Number of Shares=Earnings Per Share
\$4,686,500,000/818,993,182 (p1) = \$5.72
However, it is listed adjusted on (p17) = \$5.55

Return on Invested Capital: Net Income/Total Capital x 100 =Return on Invested Capital
\$4,686,500,000/\$31,023,900,000 (p31) = 15.1%

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