Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a recent annual report, MCD company reported the following in its statement of cash flows (the amounts and accounts have been simplified): Years Ended

image text in transcribed

In a recent annual report, MCD company reported the following in its statement of cash flows (the amounts and accounts have been simplified): Years Ended December 31, 2020 2019 2018 Operating activities (millions of dollars) Net income $4,730.5 $6,025.4 $5,924.3 Adjustments to reconcile to cash provided by operations Depreciation and amortization 1,751.4 1,617.9 1,482.0 Deferred income taxes 6.4 149.7 102.6 Share-based compensation 92.4 109.6 125.1 Changes in working capital items: Accounts receivable (6.8) 27.0 (479.4) Inventories (68.6) 128.8 (1.9) Accounts payable (137.5) (26.8) 129.4 Income taxes (43.6) 173.4 (33.4) Other accrued liabilities 44.4 (3.9) (87.4) 44.4 3.9) (87.4) Cash provided by operations $6.368.6 $8.2011 $7.161.3 Required: (all dollars are in millions) a. Total revenue was $21,364.4 in the year ended December 31, 2019. How much cash did MCD collect from its customers in that year? b. Assuming that accounts payable arose solely from the purchase of inventory and that cost of good sold was $2,980.3, how much cash did MCD pay to its suppliers of inventory during the year ending December 31, 2019? c. Retained earnings at December 31, 2019, were $52,930.5 and $53,908.1 a year later. What was the amount of dividends declared by MCD in the year ended December 31, 2020? d. When a dividend is declared it becomes a liability, dividends payable. If dividends payable were $895.5 on December 31, 2019, and $938.2 on December 31, 2020, what was the dollar amount of dividends MCD paid in the year ending December 31, 2020? e. Assume that MCD paid income taxes of $1,441.9 in the year ended December 31, 2020. What was the amount of income tax expense reported in MCD's 2020 income statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions