Ch 2: Cash Flow Identify: Using the annual balance sheet and the Income Statements of Mcdonalds calculate the cash flow identify

a) OCF

b) NCS

c) changes in WC

d) CFFA

e) CFC

f) CFS)

Consolidated Balance Sheet December 31, 2017 2016 In millions, except per share data ASSETS Current assets Cash and equivalents Accounts and notes receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Assets of businesses held for sale $ 2,463.8 1,976.2 S 1,223.4 1,474.1 828.4 565.2 1,527.0 4,848.6 Total current assets 5,327.2 Other assets Investments in and advances to affiliates Goodwill Miscellaneous 1,085.7 2,379.7 2,562.8 6,028.2 725.9 2,336.5 1855.3 4,917.7 Total other assets Property and equipment Property and equipment, at cost Accumulated depreciation and amortization 36,626.4 (14,178.1) 22,448.3 34,443.4 (13,185.8) 21,257.6 Net property and equipment $ 33,803. Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Income taxes Other taxes Accrued interest Accrued payroll and other liabilities Current maturities of long-term debt Liabilities of businesses held for sale $ 924.8 265.8 $ 756.0 267.2 266.3 278.4 2,890.6 29,536.4 2,370.9 1,154.4 1,119.4 1,159.3 77.2 694.8 3.468.3 25,878.5 1,010.6 1,053.7 Total current liabilities Long-term debt Long-term income taxes Other long-term liabilities Deferred income taxes Shareholders' equity (deficit) Preferred stock, no par value; authorized 165.0 million shares; issued none Common stock, $.01 par value; authorized 3.5 billion shares; issued 1,660.6 million shares Additional paid-in capital Retained eamings Accumulated other comprehensive income Common stock in treasury, at cost: 866.5 and 841.3 million share..56,504.452,108.6) 7,072.4 48,325.8 (2,178.4) 16.6 6,757.9 46,222.7 (3,092.9) (2.204.3) 31,023.9 Total shareholders equity (deficit) 3,268.0 Total liabilities and shareholders' equity (deficit $ 33,803. See Notes to consolidated financial statements. Consolidated Statement of Income Years ended December 31, 2017 2016 2015 In millions, except per share data REVENUES Sales by Company-operated restaurants Revenues from franchised restaurants $12,718.9 $15,295.0 $16,488.3 8924.7 22,820.4...24,621.925,413.0 10,101.5 9,3260 Total revenues OPERATING COSTS AND EXPENSES Company-operated restaurant expenses 4,033.5 3,528.5 2,847.6 1,790.0 2,231.3 4,896.9 4,134.2 3,667.7 1,718.4 2,384.5 5,552.2 4,400.0 4,024.7 1,646.9 2,434.3 209.4 18,267.5 Food & paper Payroll & employee benefits Occupancy& other operating expenses Franchised restaurants-occupancy expenses Selling, general & administrative expenses Other operating (income) expense, net 1163.2752 13,267.7 9,552.7 921.3 57.9 8,573.5 3,381.2 5.192.3 16,877.4 744.5 884.8 Total operating costs and expenses Operating income Interest expense-net of capitalized interest of $5.3, $7.1 and $9.4 Nonoperating (income) expense, net Income before provision for income taxes Provision for income taxes Net income Earnings per common share-basic Earnings per common share-diluted Dividends declared per common share Weighted-average shares outstanding-basic Weighted-average shares outstanding-diluted 7,145 638.3 (48.5) 6,866.0 179 4.686.5 6,555.7 4,529.3 6.43 5.49 4.82 4.80 $6.37 3.83 807.4 815.5 5.44 61 854.4 861.2 939.4 944.6 See Notes to consolidated financial statements. Consolidated Statement of Cash Flows In millions Operating activities Years ended December 31, 2017 2016 2015 Net income Adjustments to reconcile to cash provided by operations $5,192.3 $ 4,686.5 S 4,529.3 Charges and credits 1,363.4 Depreciation and amortization Deferred income taxes Share-based compensation Net gain on sale of restaurant businesses Other 1,516.5 (538.6) 1,555.7 131.3 110.0 1,155.8 (310.7) 163.9) 1,050.7 407.6 Changes in working capital items: Accounts receivable Inventories, prepaid expenses and other current assets Accounts payable Income taxes Other accrued liabilities (340.7) 159.0) 180.6) (396.4) 146.4 5,551.2 169.7 383.0 6,5391 6059.6 (1,853.7)1,821.) 1,813.9) 975.6 Cash provided by operations Investing activities Capital expenditures Purchases of restaurant businesses Sales of restaurant businesses Proceeds from sale of businesses in China and Hong Kong Sales of property (77.0)109.5 (140.6) 974.8 1,597.0 166.8 245.9 562.0 213.1 Cash provided by (used for) investing activities 981.6 1,420.0 Financing activities Net short-term borrowings Long-term financing issuances Long-term financing repayments Treasury stock purchases Common stock dividends Proceeds from stock option exercises Excess tax benefit on share-based compensation Other (1,050.3 (286.2) 589.7 4,727.5 3,779 .5 10,220.0 (1,649.4) (822.9) 1,054.5) (4,685.7) 11,171.0) 6,099.2) (3,089.2) (3,058.2) (3,230.3) 299.4 456.8 317.2 (205.. .3.058.7) 103.7...246.8 .2.0779 Cash provided by (used for) financing activities Effect of exchange rates on cash and equivalents 264.0 Cash and equivalents increase (decrease) Change in cash balances of businesses held for sale Cash and equivalents at beginning of year Cash and equivalents at end of year Supplemental cash flow disclosures Interest paid Income taxes paid ,0664.6.288.1.....5.607.6 174.0 1.223.4 $2,463.8 174.0 7.685.5 1.223.4 7685.5 $ 885.2 $ 873.5 $ 640.8 2.387.5 1.985.4 2,786.3