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, eg. 525.2 million. Round current ratio and times interest earned to 2 decimal places, eg. 6.25:1 or 2.66 and debt to assets ratio to O decimal places, e.g. 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 Attempts: 2 of 2 used Part 2 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 %
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, eg. 525.2 million. Round current ratio and times interest earned to 2 decimal places, eg. 6.25:1 or 2.66 and debt to assets ratio to O decimal places, e.g. 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 Attempts: 2 of 2 used Part 2 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 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education