Assignment Exercise 201: Financial Statement Capital Structures

Find three different financial statements that have varying capital structures. Write a paragraph about each that explains the debt-equity relationship and that computes the percentage of debt and the percentage of equity represented.

Also note whether the percentage of annual interest on debt is revealed in the notes to the financial statements. If so, do you believe the interest rate is fair and equitable? Why?

Debt Equity Ratio = Total Liabilities/Shareholders Equity

Google: As of 06/30/2016

Current Liability: $17,341.00 Total Equity: $127,879.00 Debt Equity Ratio: $0.14

McDonalds: As of 06/30/2015

Current Liability: $32,506,500.00 Total Equity: $640,000.00 Debt Equity Ratio: $50.79

Ford Motor Company: 06/30/2016

Current Liability: $208,537,000.00 Total Equity: $31,141,000.00 Debt Equity Ratio: $6.70