McDonald's Financial Statements Contain the Following Selected Data (In Millions)

question 95

Essay

McDonald's financial statements contain the following selected data (in millions).


Instructions
(a) Compute the following values and provide a brief interpretation of each.
(1) Working capital. (3) Debt to assets ratio.
(2) Current ratio. (4) Times interest earned.
(b) The notes to McDonald's financial statements show that subsequent to this year the company will have future minimum lease payments under operating leases of $10,513.8 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $9,400 million. Recompute the debt to assets ratio after adjusting for this. Discuss your result.

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Definitions:

Task System

The Task System was a labor system where enslaved people were assigned daily tasks to complete and were allowed some personal time upon the completion of those tasks.

Labor Intensive

Describes industries or processes that require a large amount of labor to produce goods or services, often involving significant human effort and minimal automation.

Slaves

Individuals forcibly held and compelled to work without freedom or personal rights.

Task System

A labor system, particularly used in the context of slavery, where enslaved individuals were assigned specific tasks to complete each day.