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*		$ 2,178		$ 253,912
Accounts and notes receivable		1,179		69,690
Inventories		108		9,229
Prepaid expenses and other current assets		760		72,452
Advertising funds restricted assets				63,015
Total current assets		$ 4,225		$ 468,298
Total current liabilities		$ 2,743		$ 348,531
Total noncurrent liabilities		$18,871		$2,115,219
Total shareholders equity**		$12,981		$1,647,064

*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:

1. Working capital. Enter amounts for McDonalds in millions, Wendy's in thousands.
2. Current ratio. Round your answers to two decimal places.
3. 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