Question
In: Accounting
Suppose McDonald’s 2020 financial statements contain the following selected data (in millions). Current assets $3,390.0 Interest...
Suppose McDonald’s 2020 financial statements
contain the following selected data (in millions).
| Current assets | $3,390.0 | Interest expense | $476.0 | |||
| Total assets | 29,040.0 | Income taxes | 1,891.0 | |||
| Current liabilities | 2,940.0 | Net income | 4,481.0 | |||
| Total liabilities | 15,682.0 |
(a1) Compute the following values.
| 1. | Working capital. | $ | millions | ||
| 2. | Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) | :1 | |||
| 3. | Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.) | % | |||
| 4. | Times interest earned. (Round to 2 decimal places, e.g. 6.25.) | times |
Solutions
Expert Solution
Answer:
| Working capital | $ 450.00 |
| Current Ratio | 1.15 |
| Debt to Total assets Ratio | 44% |
| Times interest earned ratio | 14.39 |
Calculation:
| Particulars | Amount | |
| A | Current assets | $ 3,390 |
| B | Current liablites | $ 2,940 |
| A-B | Working capital | 450.0 |
| Particulars | Amount | |
| A | Current assets | $ 3,390 |
| B | Current liablites | $ 2,940 |
| A/B | Current Ratio | 1.15 |
| Particulars | Amount | |
| A | Debt (15682-2940) | $ 12,742 |
| B | Total assets | $ 29,040 |
| A/B | Debt to Total assets Ratio | 44% |
| Particulars | 2016 | |
| A | EBIT (4481+1891+476) | $ 6,848 |
| B | Interest | $ 476 |
| A/B | Times interest earned ratio | 14.39 |
In case of any doubt, please feel free to comment.
ekkarill92 answered 2 years agoRelated Solutions
The financial statements of Friendly Fashions include the following selected data (in millions): ($ in...
The financial statements of Friendly Fashions include the
following selected data (in millions):
($
in millions)
2018
2017
Sales
$
10,043
$
11,134
Net
income
$
312
$
818
Stockholders' equity
$
1,850
$
2,310
Average Shares outstanding (in millions)
675
-
Dividends per share
$
0.31
Stock price
$
6.20
-
Required:
Calculate the following ratios for Friendly Fashions in 2018
Return on equity, Dividend yield,earnings per share,Price
earnings ratio
The financial statements of Friendly Fashions include the following selected data (in millions): ($ in...
The financial statements of Friendly Fashions include the
following selected data (in millions):
($
in millions)
2018
2017
Sales
$
10,043
$
11,134
Net
income
$
312
$
818
Stockholders' equity
$
1,850
$
2,310
Average Shares outstanding (in millions)
675
-
Dividends per share
$
0.31
Stock price
$
6.20
-
Required:
Calculate the following ratios for Friendly Fashions in 2018
Return on equity, Dividend yield,earnings per share,Price
earnings ratio
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target...
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Income Statement Data for YearTarget CorporationWal-Mart Stores, Inc.Net sales$65,357$408,214Cost of goods sold45,583304,657Selling and administrative expenses15,10179,607Interest expense7072,065Other income (expense)(94)(411)Income tax expense1,3847,139Net income$2,488$14,335Balance Sheet Data (End ofYear)Current assets$18,424$48,331Noncurrent assets26,109122,375Total assets$44,533$170,706Current liabilities$11,327$55,561Long-term debt17,85944,089Total stockholders' equity15,34771,056(b) Compare the liquidity, solvency, and profitability of the two companies.
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target...
Suppose selected financial data of Target and
Wal-Mart for 2020 are presented here (in
millions).
Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales
$65,357
$408,214
Cost of goods sold
45,583
304,657
Selling and administrative
expenses
15,101
79,607
Interest expense
707
2,065
Other income (expense)
(94)
(411)
Income tax expense
1,384
7,139
Net income
$ 2,488
$ 14,335
Balance Sheet Data (End of Year)
Current assets
$18,424
$48,331
Noncurrent assets
26,109
122,375
Total assets
$44,533
$170,706
Current...
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target...
Suppose selected financial data of Target and
Wal-Mart for 2020 are presented here (in
millions).
Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales
$65,357
$408,214
Cost of goods sold
45,583
304,657
Selling and administrative expenses
15,101
79,607
Interest expense
707
2,065
Other income (expense)
(94)
(411)
Income tax expense
1,384
7,139
Net income
$ 2,488
$ 14,335
Balance Sheet Data (End of Year)
Current assets
$18,424
$48,331
Noncurrent assets
26,109
122,375
Total assets
$44,533
$170,706
Current...
Suppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions). Target...
Suppose selected financial data of Target and
Wal-Mart for 2020 are presented here (in
millions).
Target
Corporation
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales
$65,357
$408,214
Cost of goods sold
45,583
304,657
Selling and administrative expenses
15,101
79,607
Interest expense
707
2,065
Other income (expense)
(94)
(411)
Income tax expense
1,384
7,139
Net income
$ 2,488
$ 14,335
Balance Sheet Data (End of Year)
Current assets
$18,424
$48,331
Noncurrent assets
26,109
122,375
Total assets
$44,533
$170,706
Current...
Assume you are given the following abbreviated financial statements: ($ in millions) Current assets $96 Fixed...
Assume you are given the following abbreviated financial
statements:
($ in millions)
Current assets
$96
Fixed and other assets
$163
Total assets
$259
Current liabilities
$76
Long-term debt
$37
Stockholders' equity
$146
Total liabilities and equity
$259
Common shares outstanding
7 million shares
Total revenues
$374
Total operating costs and expenses
$319
Interest expense
$10
Income taxes
$17
Net profits
$28
Dividends paid to common stockholders
$7
On the basis of this information, calculate as many liquify,
activity, leverage, profitability,...
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions).
Problem 13-5ASuppose selected financial data of Target and Wal-Mart for 2017 are presented here (in
millions).TargetCorporationWal-MartStores, Inc.Income Statement Data for YearNet sales$65,900$409,000Cost of goods sold45,000303,000Selling and administrative expenses15,10076,000Interest expense6502,100Other income (expense)(95)(400)Income tax expense1,3006,700Net income$ 3,755$ 20,800Balance Sheet Data(End of Year)Current assets$16,000$49,000Noncurrent assets25,700123,000Total assets$41,700$172,000Current liabilities$11,000$56,000Long-term debt17,30045,000Total stockholders’ equity13,40071,000Total liabilities and stockholders’ equity$41,700$172,000Beginning-of-Year BalancesTotal assets$45,000$163,000Total stockholders’ equity12,50066,000Current liabilities10,00058,000Total liabilities32,50097,000Other DataAverage net accounts receivable$7,700$3,800Average inventory7,20033,600Net cash provided by operating activities5,60026,200Capital expenditures1,70011,500Dividends4603,900(a) For each company, compute the following
ratios. (Round all answers to 2 decimal...
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions).
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Income Statement Data for Year
Net sales $6,900 $417,000
cost ot goods sold 44,000 38,000
Selling and administratv
epenses 14400 3,000
Interest...
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are...
Selected financial data regarding current assets and current
liabilities for ACME Corporation and Wayne Enterprises, are as
follows:
($ in millions)
ACME
Corporation
Wayne
Enterprises
Current assets:
Cash and cash
equivalents
$
407
$
165
Current investments
6
463
Net receivables
706
86
Inventory
10,653
7,409
Other current assets
1,215
135
Total
current assets
$ 12,987
$ 8,258
Current
liabilities:
Current debt
$
7,421
$ 4,229
...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. The following questions concern Jesse Gelsinger who suffered from partial OTC. a. In the...
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales...
- TzeMay was one of the first women engineering students at ABC University. She graduated in 1995...
- Use the following information to calculate these various solvency measures: a) NWC, B) WCR, c) Current...
- The files SpeedControl.java and SpeedControlPanel.java contain a program (and its associated panel) with a circle that...
- Calculate the ideal age of a spouse. Enter either m or f from the keyboard in...
- Due to a recession, expected inflation this year is only 4.75%. However, the inflation rate in...
ADVERTISEMENT