The following information was summarized from the balance sheets included in Form 10-K of McDonald's Corporation at December 31, 2012, and The Wendy's Company and Subsidiaries, at December 20, 2012.

Required

1. Using the information provided, compute the following for each company at year-end:

a. Working capital

b. Current ratio

c. Quick ratio

2. Comment briefly on the liquidity of each of these two companies. Which appears to be more liquid?

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McDonald's (in millions) Wendy's (in thousands) Current Assets S 2,336.1 1,375.3 121.7 1,089.0 Cash and cash equivalents Accounts receivable and notes receivable Inventories Prepaid expenses and other current assets Deferred income tax benefit Advertising funds restricted assets Total current assets $453,361 61,164 13,805 24,231 91,489 65,777 S 709,827 S 286,862 $2,030,482 $1,985,855 Total current liabilities Total noncurrent liabilities Total shareholders' equity" $ 4,922.1 $ 3,403.1 $16,689.8 $15,293.6