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Please see attachment and answer the questions in very specific writing for Intermediate Accounting class Financial Statement Analysis Case McDonald's Corporation McDonald's is the largest
Please see attachment and answer the questions in very specific writing for Intermediate Accounting class
Financial Statement Analysis Case McDonald's Corporation McDonald's is the largest and best-known global food-service retailer, with more than 32,000 restaurants in 118 countries. On any day, McDonald's serves approximately 1 percent of the world's population. The following is information related to McDonald's property and equipment. McDonald's CorporationSummary of Significant Accounting Policies Section Property and Equipment. Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildingsup to 40 years; leasehold improvementsthe lesser of useful lives of assets or lease terms, which generally include option periods; and equipmentthree to 12 years. [In the notes to the financial statements:] Property and Equipment Net property and equipment consisted of: December 31 (In millions) 2014 2013 Land $5,788.4 $5,849.3 Buildings and improvements on owned land 14,322.4 14,715.6 Buildings and improvements on leased land 13,284.0 13,825.2 5,113.8 5,376.8 617.5 588.7 39,126.1 40,355.6 (14,568.6) (14,608.3) $24,557.5 $25,747.3 Equipment, signs and seating Other Accumulated depreciation and amortization Net property and equipment Depreciation and amortization expense for property and equipment was (in millions): 2014$1,539.3; 2013$1,498.8; 2012$1,402.2. [In its 6-year summary, McDonald's provides the following information.] (in millions) Cash provided by operations 2014 2013 2012 $6,370 $7,121 6,966 Capital expenditures 2,583 2,825 Instructions (a) What method of depreciation does McDonald's use? (b) Does depreciation and amortization expense cause cash flow from operations to increase? Explain. (c) What does the schedule of cash flow measures indicate? 3,049Step by Step Solution
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