McDonald Corp Prepare a Horizontal Analysis of Revenues and Cost of Goods

question 105

Essay

McDonald Corp. reported the following on its comparative income statement (in millions):
$\begin{array}{llll}&\underline{2019}&\underline{2018}&\underline{2017}\\\text { Revenue } & \$ 728 & \$ 675 & \$ 500 \\\text { Cost of goods sold } & 312 & 258 & 220\end{array}$ Prepare a horizontal analysis of revenues and cost of goods sold, both in dollar amounts and in percentages, for 2019 and 2018. (Round your percentage answers to two decimal places.)

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Definitions:

Time Charges

Fees based on the amount of time spent to perform a service, often used in professional services like law and accounting.

Hourly Labour Cost

The total expense for an employer of paying hourly wages to employees, including benefits and taxes.

Profit Margin

A financial metric that calculates the amount of net income generated as a percentage of revenues.

Objective Function

A mathematical function used in decision-making processes, often in optimization and linear programming, representing the goal to be achieved, such as minimizing costs or maximizing profits.