Suppose McDonald's 2025 financial statements contain the following selected data (in millions). Current assets $3,461.5 Interest expense $480.0 Total assets 30,250.0 Income taxes 1,942.0 Current liabilities 3,010.0 Net income 4,538.0 Total liabilities 16,637.5 (a1) Compute the following values. a. Working capital. (Round to 1 decimal place in millions, e.g. 5,275.5.) $ 451.5 millions b. Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) 1.15 :1 C. Debt to assets ratio. (Round to O decimal places, e.g. 62%.) 55 % d. Times interest earned. (Round to 2 decimal places, e.g. 6.25.) 14.50 times
Suppose McDonald's 2025 financial statements contain the following selected data (in millions). Current assets $3,461.5 Interest expense $480.0 Total assets 30,250.0 Income taxes 1,942.0 Current liabilities 3,010.0 Net income 4,538.0 Total liabilities 16,637.5 (a1) Compute the following values. a. Working capital. (Round to 1 decimal place in millions, e.g. 5,275.5.) $ 451.5 millions b. Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) 1.15 :1 C. Debt to assets ratio. (Round to O decimal places, e.g. 62%.) 55 % d. Times interest earned. (Round to 2 decimal places, e.g. 6.25.) 14.50 times
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1SEB
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Question

Transcribed Image Text:Suppose McDonald's 2025 financial statements contain the following selected data (in millions).
Current assets
$3,461.5
Interest expense
$480.0
Total assets
30,250.0
Income taxes
1,942.0
Current liabilities
3,010.0
Net income
4,538.0
Total liabilities
16,637.5
(a1)
Compute the following values.
a.
Working capital. (Round to 1 decimal place in millions, e.g. 5,275.5.) $
451.5
millions
b.
Current ratio. (Round to 2 decimal places, e.g. 6.25:1.)
1.15
:1
C.
Debt to assets ratio. (Round to O decimal places, e.g. 62%.)
55
%
d.
Times interest earned. (Round to 2 decimal places, e.g. 6.25.)
14.50
times
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