Obtain a copy of the annual report of McDonalds Corporation for the most recent year. You can
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Determine the following from the company’s financial statements:
1. Do the company’s revenues exceed expenses? What is the amount of net income?
2. Did net income increase in the most recent year compared to the previous year?
3. Which assets are listed as current assets? Why are other assets not listed as current assets?
4. Which liabilities are listed as current liabilities? Why are other liabilities not listed as current liabilities?
5. By how much did retained earnings increase/decrease in the most recent year compared to the previous year?
6. What is the amount of dividends paid to common stockholders? This information can be found in the statement of shareholders’ equity or the statement of cash flows.
7. Explain the relationship between the change in retained earnings, net income, and dividends.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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