Q1 McDonald’s is the world’s (________ / #2) restaurant chain when measured by (________/ # of units) and has more than 32,000 restaurants in more than 120 countries.
Q2. In regard to assets, this company has a major investment in (inventories / ________/ goodwill).On average, the PPE has been used for (more / ________) than half of its useful life.
Q3. Long-term debt was borrowed during (________ / ________/ ________).
Q4. This company was able to attract new shareholders during (________ / ________ / ________). As of 12/31/2010 shareholders have contributed a total of ________ million to this corporation.
Q5. This company distributed dividends of $1,823.4 million in 2008, $2,235.5 million in 2009, and $2,408.1 million in 2010. Use this information to compute net income for:
Q6. Treasury stock results from (selling assets / refinancing debt / ________). Additional treasury stock was acquired during (________ / ________ / ________).
Q7. Refer to the Classified Balance Sheet. The assets of this company are primarily financed with (liabilities / contributed capital / ________________), which is (________/ external) financing.
Q8. Refer to the trend index. At the end of 2008, assets were (above / ________) base year levels, an indication of a (recovering / ________) economy, while at the end of 2010 assets were (________/ below) base year levels, an indication of a (________/ poor) economy.
Since the base year, total assets (________/ decreased) by ________________total liabilities (________/ decreased) by ________________while total stockholders’ equity (increased / ________) by ________________indicating a greater reliance on (debt / equity) financing.
Current liabilities (increased / ________) by ________while noncurrent liabilities (________/ decreased) by ________________indicating (________/ lesser) reliance on long-term financing.
Retained earnings (________/ decreased) by ________________which is the result of (purchasing additional assets / acquiring other companies / ________________________).
Q9. Review the financial information of this company and comment on
a. signs of financial strength.
b. warning signs or signs of financial weakness.
Q10. If you had $10,000, would you consider investing in this company? (________/ ________) Why or why not?