McDonald's 1995 financial statements contain the following selected data (in millions):

\section*{Instructions}

(a) Compute these values:
(1) Working capital (4) Debt to total assets ratio (2) Current ratio (5) Times interest earned ratio (3) Acid-test ratio

(b) The notes to McDonald's financial statements show that during the next 5 years the company will have future minimum lease payments under operating leases of \(\$ 5,542.8\) million. Discuss the implications of these unrecorded obligations for the analysis of McDonald's liquidity and solvency.

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Current assets $ 955.8 Total assets 15,414.6 Interest expense Income taxes S 340.2 Current liabilities 1,794.9 Net income 741.8 1,427.3 Total liabilities 7,553.3 Cash 334.8 Accounts receivable 377.3 Notes receivable 36.3