For this question you must use the excerpts from the financial statements of The Wendys Company, found in Appendix 1.

What amount of accounts payable did Wendys have at January 2, 2022? Did this account increase or decrease over the past year? Why do you think this change occurred?

On its Balance Sheet Wendys lists current portion of long-term debt. What does this account represent?

Did Wendys long-term debt increase or decrease over the past year? Why do you think this change occurred?

Behind Wendys financial statements you will see a few pages of information. This information is known as the notes to the financial statements. The pages in your file only represent a small portion of the total notes to Wendys statements. The notes to these financial statements contain important information that is not, or cannot, be disclosed on the financial statements themselves.

Look at the third page of Wendys notes, at the section called commitments and contingencies. What are contingencies? What characteristics do contingent liabilities have to have in order to be described in the notes?