Question

Visit the EDGAR database. Access the 10-K report for the year ended December 31, 2017, filed on February 23, 2018. Any sources used to support your answers below should be cited using APA Style.

To access this information:

Search SEC.gov Company Filings for McDonald's by entering the ticker information, MCD , in the Fast Search box

After reviewing the above information, answer the following questions:

• Review McDonald's balance sheet and identify how many classes of stock it has issued.
• What are the par values, number of authorized shares, and issued shares of the classes of stock you identified in part 1?
• Review its statement of cash flows and identify what total amount of cash it paid in 2017 to purchase treasury stock.
• What amount did McDonald's pay out in common stock cash dividends for 2017?

Answer 1

Question 1- Review MCDonals balance sheet and identify how many classes of stock it has issued?

Answer - MCDonalds has issued 2 classes of stock - 1) preferred stock. 2) common stock.

MCD Balance Sheet

Total Current Assets	6,609.40
Cash and Short Term Investments	3,255.90
Cash
Cash & Equivalents	3,255.70
Short Term Investments	0.20
Total Receivables, Net	2,852.60
Accounts Receivables - Trade, Net	2,852.60
Total Inventory	42.60
Prepaid Expenses	447.90
Other Current Assets, Total	10.40
Total Assets	49,938.90
Property/Plant/Equipment, Total - Net	36,832.30
Property/Plant/Equipment, Total - Gross	39,137.40
Accumulated Depreciation, Total	-15,307.40
Goodwill, Net	2,671.90
Intangibles, Net
Long Term Investments	1,278.10
Note Receivable - Long Term
Other Long Term Assets, Total	2,547.20
Other Assets, Total
Total Current Liabilities	7,246.10
Accounts Payable	538.40
Payable/Accrued
Accrued Expenses	2,312.80
Notes Payable/Short Term Debt	1,000
Current Port. of LT Debt/Capital Leases	3,086.60
Other Current liabilities, Total	308.30
Total Liabilities	59,402
Total Long Term Debt	34,675.60
Long Term Debt	34,675.60
Capital Lease Obligations	11,881.80
Deferred Income Tax	1,549.20
Minority Interest
Other Liabilities, Total	15,931.10
Total Equity	-9,463.10
Redeemable Preferred Stock, Total
Preferred Stock - Non Redeemable, Net	0
Common Stock, Total	16.60
Additional Paid-In Capital	7,780
Retained Earnings (Accumulated Deficit)	52,660.80
Treasury Stock - Common	-67,114.20
ESOP Debt Guarantee
Unrealized Gain (Loss)
Other Equity, Total	-2,806.30
Total Liabilities & Shareholders' Equity	49,938.90
Total Common Shares Outstanding	744.10
Total Preferred Shares Outstanding

Question - 2. What are the par values, number of authorised shares and issued shares of classes of stock yuo identified in part 1.

Answer - 2- preferred stock.

par value no par value.  

No. Of authorised

shares. 165 million.  

issued shares. 0.

  2-Common stock

Par value. $ 0.01

No.of authorised

shares. 3.5 billion

Issued shares. 1660.6 million

  

Question -3. Review its state ments of cash flow and identity what total amount of cash it paid in 201 to purchase treasury stock.

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

McDonald’s Corp., consolidated cash flow statement

US$ in thousands

	12 months ended:	Dec 31, 2019		Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015
	Net income	6,025,400		5,924,300		5,192,300		4,686,500		4,529,300
	Depreciation and amortization	1,617,900		1,482,000		1,363,400		1,516,500		1,555,700
	Deferred income taxes	149,700		102,600		(36,400)		(538,600)		(1,400)
	Share-based compensation	109,600		125,100		117,500		131,300		110,000
	Net gain on sale of restaurant businesses	(128,200)		(308,800)		(1,155,800)		(310,700)		(163,900)
	Other	49,200		114,200		1,050,700		407,600		341,500
	Charges and credits	1,798,200		1,515,100		1,339,400		1,206,100		1,841,900
	Accounts receivable	27,000		(479,400)		(340,700)		(159,000)		(180,600)
	Inventories, prepaid expenses and other current assets	128,800		(1,900)		(37,300)		28,100		44,900
	Accounts payable	(26,800)		129,400		(59,700)		89,800		(15,000)
	Income taxes	173,400		(33,400)		(396,400)		169,700		(64,400)
	Other accrued liabilities	(3,900)		(87,400)		(146,400)		38,400		383,000
	Changes in working capital items	298,500		(472,700)		(980,500)		167,000		167,900
	Adjustments to reconcile to cash provided by operations	2,096,700		1,042,400		358,900		1,373,100		2,009,800
	Cash provided by operations	8,122,100		6,966,700		5,551,200		6,059,600		6,539,100
	Capital expenditures	(2,393,700)		(2,741,700)		(1,853,700)		(1,821,100)		(1,813,900)
	Purchases of restaurant and other businesses	(540,900)		(101,700)		(77,000)		(109,500)		(140,600)
	Sales of restaurant businesses	340,800		530,800		974,800		975,600		341,100
	Proceeds from sale of businesses in China and Hong Kong	—		—		1,597,000		—		—
	Sales of property	151,200		160,400		166,800		82,900		213,100
	Other	(628,500)		(302,900)		(245,900)		(109,500)		(19,700)
	Cash (used for) provided by investing activities	(3,071,100)		(2,455,100)		562,000		(981,600)		(1,420,000)
	Net short-term borrowings	799,200		95,900		(1,050,300)		(286,200)		589,700
	Long-term financing issuances	4,499,000		3,794,500		4,727,500		3,779,500		10,220,000
	Long-term financing repayments	(2,061,900)		(1,759,600)		(1,649,400)		(822,900)		(1,054,500)
	Treasury stock purchases	(4,976,200)		(5,207,700)		(4,685,700)		(11,171,000)		(6,099,200)
	Common stock dividends	(3,581,900)		(3,255,900)		(3,089,200)		(3,058,200)		(3,230,300)
	Proceeds from stock option exercises	350,500		403,200		456,800		299,400		317,200
	Excess tax benefit on share-based compensation	—		—		—		—		51,100
	Other	(23,500)		(20,000)		(20,500)		(3,000)		(58,700)
	Cash provided by (used for) financing activities	(4,994,800)		(5,949,600)		(5,310,800)		(11,262,400)		735,300
	Effect of exchange rates on cash and equivalents	(23,700)		(159,800)		264,000		(103,700)		(246,800)
	Cash and equivalents increase (decrease)	32,500		(1,597,800)		1,066,400		(6,288,100)		5,607,600
	Change in cash balances of businesses held for sale	—		—		174,000		(174,000)		—
	Cash and equivalents at beginning of year	866,000		2,463,800		1,223,400		7,685,500		2,077,900
	Cash and equivalents at end of year Question -4. What amount did MCDonalds pay out in comman stock cash dividends for 2017.. MCD Dividend History EX-DIVIDEND DATE11/30/2020 DIVIDEND YIELD2.21% ANNUAL DIVIDEND$5.16 P/E RATIO35.63% 11/30/2017 CASH $1.01 09/21/2017 12/01/2017 12/15/2017 08/30/2017 CASH $0.94 07/28/2017 09/01/2017 09/18/2017 06/01/2017 CASH $0.94 05/25/2017 06/05/2017 06/19/2017 Q	898,500		866,000		2,463,800		1,223,400		7,685,500