Question
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 (in millions) Wendys (in thousands)
Current Assets:
Cash and cash equivalents* $ 2,105 $ 253,912
Accounts and notes receivable 1,180 69,690
Inventories 113 9,182
Prepaid expenses and other current assets 810 72,247
Advertising funds restricted assets 65,012
Total current assets $ 4,208 $ 470,043
Total current liabilities $ 2,768 $ 326,302
Total noncurrent liabilities $18,318 $2,041,226
Total shareholders equity** $13,492 $1,796,272
*Described as Cash and equivalents by McDonalds.
**Described as Stockholders equity by Wendys.
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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