Concept Introduction:
Current liability:
Current liabilities are the liabilities payable within one year or one accounting cycle whichever is longer. They include accounts payable, wages payable, notes payable, current portion of long term liabilities.
Times Interest Earned Ratio:
Times interest earned is used to assess the company's ability to meet its interest payment dues. The following formula is used to calculate the ratio.
Requirement 1:
To identify:
The current liabilities on McDonald's
Concept Introduction:
Current liability:
Current liabilities are the liabilities payable within one year or one accounting cycle whichever is longer. They include accounts payable, wages payable, notes payable, current portion of long term liabilities.
Times Interest Earned Ratio:
Times interest earned is used to assess the company's ability to meet its interest payment dues. The following formula is used to calculate the ratio.
Requirement 2:
To compute:
The times interest earned ratio of McDonald.

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Chapter 11 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
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