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Exercise 10-16 Suppose McDonalds 2014 financial statements contain the following selected data (in millions). Current assets $ 3,416.3 Interest expense $ 473.2 Total assets 30,224.9

Exercise 10-16 Suppose McDonalds 2014 financial statements contain the following selected data (in millions). Current assets $ 3,416.3 Interest expense $ 473.2 Total assets 30,224.9 Income taxes 1,936 Current liabilities 2,988.7 Net income 4,551.0 Total liabilities 16,191.0 Compute the following values. (1) Working capital (in millions) $ (2) Current ratio (Round to 2 decimal places, e.g. 6.25:1.) :1 (3) Debt to assets ratio (Round to 0 decimal places, e.g. 62%.) % (4) Times interest earned (Round to 2 decimal places, e.g. 6.25.) times Suppose the notes to McDonalds financial statements show that subsequent to 2014 the company will have future minimum lease payments under operating leases of $10,715.5 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $8,800 million. Recompute the debt to assets ratio after adjusting for this. (Round to 0 decimal places, e.g. 62%.) Debt to assets ratio %

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