Suppose McDonald’s 2022 financial statements contain the following selected data (in millions). Current assets $3,381.0 Interest expense $466.0 Total assets 30,189.0 Income taxes 1,929.0 Current liabilities 2,963.0 Net income 4,544.0 Total liabilities 16,156.0 (a1) Compute the following values. a. Working capital. (Round to 1 decimal place, e.g. 5,275.5) $enter a dollar amount in millions millions b. Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) enter current ratio rounded to 2 decimal places :1 c. Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.) enter percentages rounded to 0 decimal places % d. Times interest earned. (Round to 2 decimal places, e.g. 6.25.)
Suppose McDonald’s 2022 financial statements contain the following selected data (in millions). Current assets $3,381.0 Interest expense $466.0 Total assets 30,189.0 Income taxes 1,929.0 Current liabilities 2,963.0 Net income 4,544.0 Total liabilities 16,156.0 (a1) Compute the following values. a. Working capital. (Round to 1 decimal place, e.g. 5,275.5) $enter a dollar amount in millions millions b. Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) enter current ratio rounded to 2 decimal places :1 c. Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.) enter percentages rounded to 0 decimal places % d. Times interest earned. (Round to 2 decimal places, e.g. 6.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Suppose McDonald’s 2022 financial statements contain the following selected data (in millions).
| Current assets | $3,381.0 | Interest expense | $466.0 | |||
| Total assets | 30,189.0 | Income taxes | 1,929.0 | |||
| Current liabilities | 2,963.0 | Net income | 4,544.0 | |||
| Total liabilities | 16,156.0 |
(a1)
Compute the following values.
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a.
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|
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$enter a dollar amount in millions | millions | |
|---|---|---|---|---|---|
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b.
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enter current ratio rounded to 2 decimal places | :1 | |
|
c.
|
|
Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.)
|
enter percentages rounded to 0 decimal places | % | |
|
d.
|
|
Times interest earned. (Round to 2 decimal places, e.g. 6.25.)
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enter times interest earned rounded to 2 decimal places | times |
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