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, 2014, and The Wendys Company and Subsidiaries at December 28, 2014.

		McDonalds		Wendys
		(in millions)		(in thousands)
Current Assets:
Cash and cash equivalents		$ 1,984		$ 253,912
Accounts and notes receivable		1,257		69,690
Inventories		106		8,561
Prepaid expenses and other current assets		794		70,685
Deferred income tax benefit				73,513
Advertising funds restricted assets				64,663
Total current assets		$ 4,141		$ 541,024
Total current liabilities		$ 2,861		$ 329,744
Total noncurrent liabilities		$19,040		$2,057,304
Total shareholders equity*		$12,387		$1,779,243

*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	$fill in the blank 1	$fill in the blank 2
b. Current ratio	fill in the blank 3	fill in the blank 4
c. Quick ratio	fill in the blank 5	fill in the blank 6

2. Which company appears to be more liquid?

McDonald'sWendy's