Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

McDonald's financial statements contain the following selected data (in millions). Current assets $3,881.9 Total assets 29,391.7 Current liabilities 4,498.5 Total liabilities 13,611.9 Interest expense

 

McDonald's financial statements contain the following selected data (in millions). Current assets $3,881.9 Total assets 29,391.7 Current liabilities 4,498.5 Total liabilities 13,611.9 Interest expense $410.1 Income taxes 1,237.1 Net Income 2,395.1 Part 1 Your Answer Correct Answer Your answer is correct. Compute the following values. (Enter amounts in millions, e.g. 525.2 million. Round current ratio and times interest earned to 2 decimal places, e.g. 6.25:1 or 2.66 and debt to assets ratio to O decimal places, eg. 25%. If answer is negative enter with either a - sign e.g. -525.5 or in parenthesis e.g. (525.5).) (1) Working capital $ 616.6 millions (2) Current ratio 0.86 :1 (3) Debt to assets ratio 46 % (4) Times interest earned 9.85 times Solution Part 2 Attempts: 2 of 2 used The notes to McDonald's financial statements show that subsequent to this year the company will have future minimum lease payments under operating leases of $10,513.8 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $9,400 million. Recompute the debt to assets ratio after adjusting for this. (Round answer to O decimal places, e.g. 25%) Debt to assets ratio %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Algorithm Design And Applications

Authors: Michael T. Goodrich, Roberto Tamassia

1st Edition

1118335910, 978-1118335918

More Books

Students also viewed these Algorithms questions