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Liquidity Analyses for McDonalds and Wendys The following information was summarized from the balance sheets included in Form 10-K of McDonalds Corporation at December 31,
Liquidity Analyses for McDonalds and Wendys
The following information was summarized from the balance sheets included in Form 10-K of McDonalds Corporation at December 31, 2015, and The Wendys Company and Subsidiaries at January 3, 2016.
McDonalds | Wendys | |||
(in millions) | (in thousands) | |||
Current Assets: | ||||
Cash and cash equivalents* | $ 2,112 | $ 253,912 | ||
Accounts and notes receivable | 1,221 | 69,690 | ||
Inventories | 113 | 8,832 | ||
Prepaid expenses and other current assets | 796 | 73,343 | ||
Advertising funds restricted assets | 62,643 | |||
Total current assets | $ 4,242 | $ 468,420 | ||
Total current liabilities | $ 2,629 | $ 348,455 | ||
Total noncurrent liabilities | $19,551 | $2,078,834 | ||
Total shareholders equity** | $12,590 | $1,728,155 |
*Described as Cash and equivalents by McDonalds.
**Described as Stockholders equity by Wendys.
Required:
1. Using the information provided, compute the following for each company at year-end:
- Working capital. Enter amounts for McDonalds in millions, Wendy's in thousands.
- Current ratio. Round your answers to two decimal places.
- Quick ratio. Round your answers to two decimal places.
McDonald's | Wendy's | |
a. Working capital | $ | $ |
b. Current ratio | ||
c. Quick ratio |
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