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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:

  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
b. Current ratio
c. Quick ratio

2. Which company appears to be more liquid? McDonald's

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