Write a paper to analysis McDonald?s income statement and balance sheet. In the vertical analysis, you will measure performance against one variable: revenue in the income statement and assets in the balance sheet from the most recent year. The horizontal analysis measures trends over the years and is a strong gauge of growth and consistence.

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Critical Elements Proficient (100%) Analysis: Analyzes items that stand out from a Vertical Analysis: Stand Out vertical analysis of the company's most recent financial statements, justifying response, including specific examples and elements considered in arriving at answer Analysis: Analyzes what vertical analysis suggests for Vertical managing the company's financial health, Analysis: justifying response Managing Analysis: Assesses what vertical analysis suggests Vertical with respect to potential investors' view of company, justifying response Analysis: Potential Investors Analysis: Horizontal Analysis: Stand Out Analyzes items that stand out from three- year horizontal analysis of company's financial statements, justifying response, including elements considered in arriving at answer Analysis: Analyzes what horizontal analysis suggests Horizontal for managing the company's financial Analysis: health, justifying response Managing Needs Improvement (75%) Analyzes items that stand out from vertical analysis but does not justify response, including specific examples and elements considered in arriving at answer Analyzes what vertical analysis suggests for managing the company's financial health but does not justify response or response contains inaccuracies or omits critical details Assesses what vertical analysis suggests with respect to potential investors' view of company but does not justify response or response contains inaccuracies or omits key details Not Evident (0%) Does not analyze items that stand out from vertical analysis of company's most recent financial statements Does not analyze what vertical analysis suggests for managing the company's financial health Does not assess what vertical analysis suggests with respect to potential investors' view of company Does not analyze items that stand out from three-year horizontal analysis of company's Analyzes items that stand out from horizontal analysis but does not justify response, including elements considered in financial statements arriving at answer, or response contains inaccuracies or omits critical details Analyzes what horizontal analysis suggests for managing the company's financial health but does not justify response or response contains inaccuracies or omits critical details Does not analyze what horizontal analysis suggests for managing the company's financial health Value 15 15 15 15 15 View: Annual Data | Quarterly Data Period Ending Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Dec 31, 2014 27,441,300 16,985,600 10,455,700 2,506,500 All numbers in thousands Dec 31, 2012 27,567,000 16,750,700 Dec 31, 2013 28,105,700 17,203,000 10,902,700 2,138,400 10,816,300 2,211,700 Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items 7,949,200 (6,700) 7,372,000 7,372,000 2,614,200 4,757,800 8,764,300 (37,900) 8,204,500 8,204,500 2,618,600 5,585,900 8,604,600 (9,000) 8,079,000 8,079,000 2,614,200 5,464,800 Critical Elements Proficient (100%) Analysis: Analyzes items that stand out from a Vertical Analysis: Stand Out vertical analysis of the company's most recent financial statements, justifying response, including specific examples and elements considered in arriving at answer Analysis: Analyzes what vertical analysis suggests for Vertical managing the company's financial health, Analysis: justifying response Managing Analysis: Assesses what vertical analysis suggests Vertical with respect to potential investors' view of company, justifying response Analysis: Potential Investors Analysis: Horizontal Analysis: Stand Out Analyzes items that stand out from three- year horizontal analysis of company's financial statements, justifying response, including elements considered in arriving at answer Analysis: Analyzes what horizontal analysis suggests Horizontal for managing the company's financial Analysis: health, justifying response Managing Needs Improvement (75%) Analyzes items that stand out from vertical analysis but does not justify response, including specific examples and elements considered in arriving at answer Analyzes what vertical analysis suggests for managing the company's financial health but does not justify response or response contains inaccuracies or omits critical details Assesses what vertical analysis suggests with respect to potential investors' view of company but does not justify response or response contains inaccuracies or omits key details Not Evident (0%) Does not analyze items that stand out from vertical analysis of company's most recent financial statements Does not analyze what vertical analysis suggests for managing the company's financial health Does not assess what vertical analysis suggests with respect to potential investors' view of company Does not analyze items that stand out from three-year horizontal analysis of company's Analyzes items that stand out from horizontal analysis but does not justify response, including elements considered in financial statements arriving at answer, or response contains inaccuracies or omits critical details Analyzes what horizontal analysis suggests for managing the company's financial health but does not justify response or response contains inaccuracies or omits critical details Does not analyze what horizontal analysis suggests for managing the company's financial health Value 15 15 15 15 15 View: Annual Data | Quarterly Data Period Ending Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Dec 31, 2014 27,441,300 16,985,600 10,455,700 2,506,500 All numbers in thousands Dec 31, 2012 27,567,000 16,750,700 Dec 31, 2013 28,105,700 17,203,000 10,902,700 2,138,400 10,816,300 2,211,700 Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items 7,949,200 (6,700) 7,372,000 7,372,000 2,614,200 4,757,800 8,764,300 (37,900) 8,204,500 8,204,500 2,618,600 5,585,900 8,604,600 (9,000) 8,079,000 8,079,000 2,614,200 5,464,800

Answer rating: 100% (QA)

Analysis of McDonalds Income Statement and Balance Sheet The objective of horizontal Analysis is the comparison of the current year with the previous years It is easy for the decision makers to take d... View the full answer