Essay
McDonald's financial statements contain the following selected data (in millions). 
Instructions
(a) Compute the following values and provide a brief interpretation of each.
(1) Working capital. (3) Debt to assets ratio.
(2) Current ratio. (4) Times interest earned.
(b) 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. Discuss your result.
Correct Answer:
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A current ratio that is less than 1.00 ...View Answer
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Correct Answer:
Verified
A current ratio that is less than 1.00 ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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