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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
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* | $ 2,169 | $ 253,912 | ||
Accounts and notes receivable | 1,167 | 69,690 | ||
Inventories | 112 | 8,567 | ||
Prepaid expenses and other current assets | 772 | 71,895 | ||
Advertising funds restricted assets | 66,505 | |||
Total current assets | $ 4,220 | $ 470,569 | ||
Total current liabilities | $ 2,670 | $ 329,797 | ||
Total noncurrent liabilities | $19,393 | $2,123,106 | ||
Total shareholders equity** | $12,481 | $1,731,251 |
*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:
- 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 | ||
b. Current ratio | ||
c. Quick ratio |
2. Which company appears to be more liquid? McDonald's
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