McDonald's Corporation December 31 Balance sheet ($millions) Cash Account receivable Inventory Prepaid expenses Total current assets $ 341 484 71 247 1143 20088 Gross fixed assets Accumulated depreciation Net fixed assets 5127 14961 702 Investments Other assets Total assets 1436 18242 Accrued expenses Liabilities and equity Liabilities (debts) Short term notes payables Account payable Tax payable Total current liabilities 1692 651 53 652 2958 Long term debts 6325 Total liabilities 9310 Equity Preferred stock 80 Common stock Par value and paid in capital 708 Retained earning 11927 Treasury stock -3783 Total common equity 8852 Total equity 8932 Total liability and equity 18242 a. Calculate the following ratios: i. Current ratio iii. ii. Inventory turnover ratio Average collection period iv. Debt ratio V. Total asset turnover vi. Fixed asset turnover vii. viii. Operation profit margin (net profit) Return on common equity b. Recommend the above ratio with compare the industry ratio Industry ratio Current ratio 0.7 Inventory turnover 90 Debts ratio Average collection period Total assets turnover 6.5days 50% 1.5 Fixed assets turnover 2 Operation profit margin 21% ROCE 15%