Book ISBN:978-1-285-18295-7 chapter 13-7 exercise. 1. Using the information provided, compute the following for each company at the year-end: a. Working capital, b. Current ratio, c. Quick ratio

Chapter 13 Finaciat Statement Anatysis Exercise 13.7 Liquidity Analyses for McDonald's and Wendy's The following information was summarized from the balance sheets included in For of MeDonald's Corporation at December 31, 2012, and The Wendy's Com Re L04 6 13-7, 13-8 Form 10 k k and pany Subsidiaries, at Deccmber 20, 2012. McDonald's(in thousands) (in millions) Wendy's Current Assets $ 453,361 s 2,336 1 1,3753 121.7 1,089.0 Cash and cash equivalents 61,164 Accounts receivable and notes receivable 13,805 Inventones 24.231 91.489 65,777 $ 709,827 $ 286,862 $2,030,482 $1,985,855 Prepaid expenses and other current assets Deferred income tax benefit Advertising funds restricted assets Total current assets Total current liabilities Total noncurrent liabilities Total shareholders' equity 4,922.1 $ 3,403.1 $16,689.8 $15,293.6 Described as "Stockholders' equity" by Wendy's Required 1. U Using the information provided, compute the following for cach company at year end- a. Working capital b. Current ratio c. Quick ratio 2. Comment briefly on the liquidity of each of these two companies. Which appears to be more y on the liquidity of each of these two companies, which appears to be more liquid