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Question
mcdonald's financial statements contain the following selected data (in millions).
Current assets $ 3,881.9
Total assets 29,391.7
Current liabilities 4,498.5
Total liabilities 13,611.9
Interest expense $ 410.1
Income taxes 1,237.1
Net Income 2,395.1
instructions
(a)compute the following values and provide a brief interpretation of each.
(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 total assets ratio after adjusting for this. discuss your result.
Answer
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