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Liquidity Analyses for McDonald's and Wendy's The following information was summarized from the balance sheets included in Form 10-K of McDonald's Corporation at December 31,
Liquidity Analyses for McDonald's and Wendy's The following information was summarized from the balance sheets included in Form 10-K of McDonald's Corporation at December 31, 2015, and The Wendy's Company and Subsidiaries at January 3, 2016. McDonald's Wendy's (in (in millions) thousands) Current Assets: Cash and cash equivalents* $ 2,117 $ 253,912 Accounts and notes receivable 1,208 69,690 Inventories 109 8,428 Prepaid expenses and other 763 76,731 current assets Advertising funds restricted 67,307 assets Total current assets $ 4,197 $ 476,068 Total current liabilities $ 2,675 $ 355,982 Total noncurrent liabilities $18,566 $2,124,825 Total shareholders' equity** $12,826 $1,801,824 *Described as "Cash and equivalents" by McDonald's **Described as "Stockholders' equity" by Wendy's. Required: 1. Using the information provided, compute the following for each company at year-end: a. Working capital. Enter amounts for McDonalds in millions, Wendy's in thousands. b. Current ratio, Round your answers to two decimal places. c. Quick ratio. Round your answers to two decimal places
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