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.)

Understand the principle of ceteris paribus and its importance in economic analysis.

Identify the effects of changes in income and prices on consumer behavior and market demand.

Understand the concept of ceteris paribus and its application in economic analysis.

Identify and explain the fallacy of composition in economic reasoning.

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Definitions:

Chunk

A unit of information grouped together for easier processing and recall, often used in memory and learning strategies.

Recognition

The identification of something as having been previously seen, heard, known, or experienced.

Fill-in-the-blank Quiz

A type of assessment where participants are required to insert missing words or information into a sentence or paragraph.

George Miller

A cognitive psychologist best known for his theory that the average number of objects an individual can hold in short-term memory is 7 ± 2.