Solution-Compute the values and provide a brief

Compute the values and provide a brief interpretation

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Reference no: EM13531889

McDonald"s 2009 financial statements contain the following selected data (in millions).

Current assets	$ 3,416.3	Interest expense	$ 473.2
Total assets	30,224.9	Income taxes	1,936.0
Current liabilities	2,988.7	Net income	4,551.0
Total liabilities	16,191.0

Instructions

(a) Compute the following values and provide a brief interpretation of each.

(1) Working capital

(2) Current ratio.

(3) Debt to total assets ratio.

(4) Times interest earned ratio.

(b) The notes to McDonald"s financial statements show that subsequent to 2009 the company will have future minimum lease payments under operating leases of $10,717.5 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $8,800 million. Recompute the debt to total assets ratio after adjusting for this. Discuss your result.

Reference no: EM13531889

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Compute the values and provide a brief interpretation

Reference no: EM13531889

Reference no: EM13531889

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