For this question you must use the excerpts from the Balance Sheet of The Wendys Company, found in Appendix 1 of Discovering Accounting.

1. On its Balance Sheet, Wendys has accounts and notes receivable. What is the difference between accounts receivable and notes receivable?
2. On its Balance Sheet Wendys has prepaid expenses. What are prepaid expenses?
3. Does Wendys have any subsidiaries? How would you know from looking at the Balance Sheet?
4. On its Balance Sheet Wendys has current portion of long-term debt. What does this represent?
5. How many common shares does Wendys have authorized? How many common shares does Wendys have issued? Is the number of issued shares the same as the number of outstanding shares? How do you know?

6. On its Balance Sheet, Wendys has additional paid-in capital. What is additional paid-in capital? What kinds of transactions use this account?

December 31 2017 ASSETS Current assets: Cash and cash equivalents Restricted cash 171,447198,240 57,612 Accounts and notes receivable, net 114.390 3,156 20,125 2,851 19,244 Prepaid expenses and other current assets . . . . Advertising funds restricted assets Total current assets 404.353 452,532 741,410 1,321,585 1,322,531 56,981 229,089 123,604 79,516 49,917 $ 4,096,938 $3.939.314 743.334 Other intangible assets Net investment in direct financing leases... Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Accounts payable Accrued $ 30,172 24,652 27,635 102,034 75,760 ..22,764 111,624 .62.602 expenses and other current liabilities Advertising funds restricted liabilities Long-term debt Deferred income taxes Other liabilities... ... 446,513 2375.290 247.354 299,053 Total liabilities Stockholders' equity: Common stock, $0.10 par value: 1,500,000 shares authorized: 470,424 shares issucd: 240,512 and 246,574 shares outstanding, respectively Additional paid-in capital Accumulated deficit Common stock held in treasury, at cost: 229,912 and 223,850 shares, 47,042 47,042 2,885.955 2,878,589 (163,289) (290,857) (2,150,307) 2,043,797) (46,198 (63,241) 27,736 ....$ 4,096,938 3,939,314 Total stockholders' equity 573,203 Total liabilities and stockholders' equity.... December 31 2017 ASSETS Current assets: Cash and cash equivalents Restricted cash 171,447198,240 57,612 Accounts and notes receivable, net 114.390 3,156 20,125 2,851 19,244 Prepaid expenses and other current assets . . . . Advertising funds restricted assets Total current assets 404.353 452,532 741,410 1,321,585 1,322,531 56,981 229,089 123,604 79,516 49,917 $ 4,096,938 $3.939.314 743.334 Other intangible assets Net investment in direct financing leases... Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Accounts payable Accrued $ 30,172 24,652 27,635 102,034 75,760 ..22,764 111,624 .62.602 expenses and other current liabilities Advertising funds restricted liabilities Long-term debt Deferred income taxes Other liabilities... ... 446,513 2375.290 247.354 299,053 Total liabilities Stockholders' equity: Common stock, $0.10 par value: 1,500,000 shares authorized: 470,424 shares issucd: 240,512 and 246,574 shares outstanding, respectively Additional paid-in capital Accumulated deficit Common stock held in treasury, at cost: 229,912 and 223,850 shares, 47,042 47,042 2,885.955 2,878,589 (163,289) (290,857) (2,150,307) 2,043,797) (46,198 (63,241) 27,736 ....$ 4,096,938 3,939,314 Total stockholders' equity 573,203 Total liabilities and stockholders' equity