Donaghue Company
Consolidated Statements of Income (Adapted)
Years Ended December 31, 2014 and 2013
(In millions, except per share data)	2014	2013
Revenues
Sales by Company-operated restaurants	$13,500	$11,300
Revenues from franchised and affiliated restaurants	4,350	3,300
Total revenues	17,850	14,600
Food and paper (Cost of goods sold)	4,725	3,164
Payroll and employee benefits	3,600	3,100
Occupancy and other operating expenses	2,700	2,500
Franchised restaurantsoccupancy expenses	948	835
Selling, general, and administrative expenses	1,850	1,740
Other operating expense, net	525	810
Total operating expenses	14,348	12,149
Operating income	3,502	2,451
Interest expense	380	400
Other nonoperating expense, net	100	59
Income before income taxes	3,022	1,992
Income tax expense	1,058	697
Net income	$1,964	$1,295
Per common share basic:
Net Income	$1.79	$1.44
Dividends per common share	$0.60	$0.60

Company's financial statements follow: The average debt ratio for most companies is around 0.69. In 2014,Donaghue'stotal debt position looks

Donaghue Company
Consolidated Balance Sheets
December 31, 2014 and 2013
(In millions, except per share data)	2014	2013
Assets
Current assets:
Cash and equivalents	$575	$415
Accounts and notes receivable	790	860
Inventories, at cost, not in excess of market	120	120
Prepaid expense and other current assets	530	420
Total current assets	2,015	1,815
Property and equipment:
Property and equipment, at cost	28,770	26,700
Accumulated depreciation and amortization	(8,800)	(7,100)
Net property and equipment	19,970	19,600
Other assets:
Investments in affiliates	1,130	1,010
Goodwill, net	1,780	1,555
Miscellaneous	1,000	1,110
Total other assets	3,910	3,675
Total assets	$25,895	$25,090
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$560	$610
Income taxes	72	17
Other taxes	225	180
Accrued interest	197	190
Accrued restructuring and restaurant closing costs	125	355
Accrued payroll and other liabilities	926	715
Current maturities of long-term debt	396	235
Total current liabilities	2,501	2,302
Long-term debt	9,200	10,200
Other long-term liabilities and minority interests	690	500
Deferred income taxes	995	985
Total liabilities	$13,386	$13,987
Stockholders' equity:
Preferred stock, no par value; authorized140.0 million shares; issuednone	---	---
Common stock, $.01 par value; authorized2.0 billion shares;
issued1,200 million shares	12	12
Additional paid-in capital	2,202	2,443
Unearned ESOP compensation	(89)	(102)
Retained earnings	20,704	19,400
Accumulated other comprehensive income (loss)	(840)	(1,630)
Common stock in treasury, at cost; 100 and 300 million shares	(9,480)	(9,020)
Total stockholders' equity	12,509	11,103
Total liabilities and stockholders' equity	$25,895	$25,090