Attached are the Balance Sheet and Statement of Cash Flows from the 2016 10-K filing of...

 

  

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Attached are the Balance Sheet and Statement of Cash Flows from the 2016 10-K filing of McDonald's Corporation. Unless otherwise indicated, enter your answers below in millions of dollars to one decimal point, as shown on the statement, without dollar signs. Do not enter negative numbers; all questions ask for dollar amounts. 2016 Annual Report-McDonalds.pdf a. What was McDonald's Net income for the year ended Dec. 31, 2016? b. How much depreciation and amortization expense did McDonalds report for the year ended Dec. 31, 2015? How much cash did McDonald's generate from operations for the year ended Dec. 31, 2014? d. How much cash did McDonald's use to purchase restaurant businesses in the year ended Dec. 31, 2016? How much cash did McDonald's obtain from selling property in the year ended Dec. 31, 2015? r. How much cash did McDonald's use to purchase Treasury stock in the year ended Dec. 31, 2014? & How much cash did McDonald's obtain from issuing long-term debt in the year ended Dec. 31, 2016? In computing cash provided by operations for the year ended Dec. 31,2016, McDonald's subtracted 159.0 million from net income due to accounts receivable." Does this subtraction suggest that (A) sales on account during the year were greater than cash collections from customers, or (B) cash collections from customers were greater than sales on account? Enter A or B. Consolidated Balance Sheet In millions, except per share data ASSETS Current assets Cash and equivalents Accounts and notes receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Assets of businesses held for sale Total current assets Other assets Investments in and advances to affiliates Goodwill Miscellaneous Total other assets Property and equipment Property and equipment, at cost Accumulated depreciation and amortization Net property and equipment Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities. Accounts payable Income taxes Other taxes Accrued interest Accrued payroll and other liabilities Current maturities of long-term debt Liabilities of businesses held for sale Total current liabilities. Long-term debt Other long-term liabilities Deferred income taxes December 31, 2016 Shareholders' equity (deficit) Preferred stock, no par value; authorized - 165.0 million shares; issued - none Common stock, $.01 par value; authorized - 3.5 billion shares; issued-1,660.6 million shares Additional paid-in capital Retained earnings Accumulated other comprehensive income Common stock in treasury, at cost: 841.3 and 753.8 million shares Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) See Notes to consolidated financial statements $ 1,223.4 1,474.1 58.9 565.2 $ 1,527.0 4,848.6 725.9 2,336.5 1,855.3 4,917.7 34,443.4 (13,185.8) 21,257.6 $31,023.9 756.0 267.2 266.3 247.5 1,159.3 77.2 694.8 3,468.3 25,878.5 2,064.3 1,817.1 16.6 6,757.9 46,222.7 (3,092.9) (52,108.6) (2,204.3) $ 31,023.9 2015 $ 7,685.5 1,298.7 100.1 558.7 9,643.0 792.7 2,516.3 1,869.1 5,178.1 ****** 37,692.4 (14,574.8) 23,117.6 $37,938.7 $ 874.7 154.8 309.0 233.1 1,378.8 2,950.4 24,122.1 2,074.0 1,704.3 16.6 6,533.4 44,594.5 (2,879.8) (41,176.8) 7,087.9 $37,938.7 Consolidated Statement of Cash Flows In millions Operating activities Net income Adjustments to reconcile to cash provided by operations Charges and credits: Depreciation and amortization Deferred income taxes Share-based compensation Other Changes in working capital items: Accounts receivable Inventories, prepaid expenses and other current assets Accounts payable Income taxes. Other accrued liabilities Cash provided by operations Investing activities Capital expenditures Purchases of restaurant businesses Sales of restaurant businesses Sales of property Other Cash used for investing activities Financing activities Net short-term borrowings Long-term financing issuances Long-term financing repayments Treasury stock purchases Common stock dividends Proceeds from stock option exercises Excess tax benefit on share-based compensation Other Cash provided by (used for) financing activities Effect of exchange rates on cash and equivalents Cash and equivalents increase (decrease) Cash balance of businesses held for sale at end of year Cash and equivalents at beginning of year Cash and equivalents at end of year Supplemental cash flow disclosures Interest paid Income taxes paid See Notes to consolidated financial statements Years ended December 31, 2016 $ 4,686.5 $ $ 1,516.5 (538.6) 131.3 96.9 (159.0) 28.1 89.8 169.7 38.4 6,059.6 2015 $4,529.3 $4,757.8 1,555.7 1,644.5 (90.7) 112.8 369.5 (1.4) 110.0 177.6 (180.6) 44.9 (15.0) (64.4) 383.0 6.539.1 (1,821.1) (1,813.9) (109.5) (140.6) 975.6 341.1 82.9 213.1 (109.5) (981.6) (1.420.0) (19.7) 51.1 (58.7) 735.3 2014 (3.0) (11,262.4) (103.7) (246.8) (6,288.1) 5,607.6 (174.0) 7,685.5 1,223.4 $7,685.5 27.0 (286.2) 589.7 3,779.5 10,220.0 (822.9) (1,054.5) (548.1) (11,171.0) (6,099.2) (3,198.6) (3,058.2) (3,230.3) (3,216.1) 299.4 317.2 235.4 (4.9) (74.7) 3.3 (14.3) 6,730.3 (2,583.4) (170.5) 403.1 86.8 (40.9) (2,304.9) 510.4 1,540.6 BIBIE 70.9 (12.8) (4,618.3) 2,077.9 2,798.7 $2,077.9 (527.9) (720.8) 873.5 $ 640.8 $ 573.2 2,387.5 1,985.4 2,388.3 Attached are the Balance Sheet and Statement of Cash Flows from the 2016 10-K filing of McDonald's Corporation. Unless otherwise indicated, enter your answers below in millions of dollars to one decimal point, as shown on the statement, without dollar signs. Do not enter negative numbers; all questions ask for dollar amounts. 2016 Annual Report-McDonalds.pdf a. What was McDonald's Net income for the year ended Dec. 31, 2016? b. How much depreciation and amortization expense did McDonalds report for the year ended Dec. 31, 2015? How much cash did McDonald's generate from operations for the year ended Dec. 31, 2014? d. How much cash did McDonald's use to purchase restaurant businesses in the year ended Dec. 31, 2016? How much cash did McDonald's obtain from selling property in the year ended Dec. 31, 2015? r. How much cash did McDonald's use to purchase Treasury stock in the year ended Dec. 31, 2014? & How much cash did McDonald's obtain from issuing long-term debt in the year ended Dec. 31, 2016? In computing cash provided by operations for the year ended Dec. 31,2016, McDonald's subtracted 159.0 million from net income due to accounts receivable." Does this subtraction suggest that (A) sales on account during the year were greater than cash collections from customers, or (B) cash collections from customers were greater than sales on account? Enter A or B. Consolidated Balance Sheet In millions, except per share data ASSETS Current assets Cash and equivalents Accounts and notes receivable Inventories, at cost, not in excess of market Prepaid expenses and other current assets Assets of businesses held for sale Total current assets Other assets Investments in and advances to affiliates Goodwill Miscellaneous Total other assets Property and equipment Property and equipment, at cost Accumulated depreciation and amortization Net property and equipment Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities. Accounts payable Income taxes Other taxes Accrued interest Accrued payroll and other liabilities Current maturities of long-term debt Liabilities of businesses held for sale Total current liabilities. Long-term debt Other long-term liabilities Deferred income taxes December 31, 2016 Shareholders' equity (deficit) Preferred stock, no par value; authorized - 165.0 million shares; issued - none Common stock, $.01 par value; authorized - 3.5 billion shares; issued-1,660.6 million shares Additional paid-in capital Retained earnings Accumulated other comprehensive income Common stock in treasury, at cost: 841.3 and 753.8 million shares Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) See Notes to consolidated financial statements $ 1,223.4 1,474.1 58.9 565.2 $ 1,527.0 4,848.6 725.9 2,336.5 1,855.3 4,917.7 34,443.4 (13,185.8) 21,257.6 $31,023.9 756.0 267.2 266.3 247.5 1,159.3 77.2 694.8 3,468.3 25,878.5 2,064.3 1,817.1 16.6 6,757.9 46,222.7 (3,092.9) (52,108.6) (2,204.3) $ 31,023.9 2015 $ 7,685.5 1,298.7 100.1 558.7 9,643.0 792.7 2,516.3 1,869.1 5,178.1 ****** 37,692.4 (14,574.8) 23,117.6 $37,938.7 $ 874.7 154.8 309.0 233.1 1,378.8 2,950.4 24,122.1 2,074.0 1,704.3 16.6 6,533.4 44,594.5 (2,879.8) (41,176.8) 7,087.9 $37,938.7 Consolidated Statement of Cash Flows In millions Operating activities Net income Adjustments to reconcile to cash provided by operations Charges and credits: Depreciation and amortization Deferred income taxes Share-based compensation Other Changes in working capital items: Accounts receivable Inventories, prepaid expenses and other current assets Accounts payable Income taxes. Other accrued liabilities Cash provided by operations Investing activities Capital expenditures Purchases of restaurant businesses Sales of restaurant businesses Sales of property Other Cash used for investing activities Financing activities Net short-term borrowings Long-term financing issuances Long-term financing repayments Treasury stock purchases Common stock dividends Proceeds from stock option exercises Excess tax benefit on share-based compensation Other Cash provided by (used for) financing activities Effect of exchange rates on cash and equivalents Cash and equivalents increase (decrease) Cash balance of businesses held for sale at end of year Cash and equivalents at beginning of year Cash and equivalents at end of year Supplemental cash flow disclosures Interest paid Income taxes paid See Notes to consolidated financial statements Years ended December 31, 2016 $ 4,686.5 $ $ 1,516.5 (538.6) 131.3 96.9 (159.0) 28.1 89.8 169.7 38.4 6,059.6 2015 $4,529.3 $4,757.8 1,555.7 1,644.5 (90.7) 112.8 369.5 (1.4) 110.0 177.6 (180.6) 44.9 (15.0) (64.4) 383.0 6.539.1 (1,821.1) (1,813.9) (109.5) (140.6) 975.6 341.1 82.9 213.1 (109.5) (981.6) (1.420.0) (19.7) 51.1 (58.7) 735.3 2014 (3.0) (11,262.4) (103.7) (246.8) (6,288.1) 5,607.6 (174.0) 7,685.5 1,223.4 $7,685.5 27.0 (286.2) 589.7 3,779.5 10,220.0 (822.9) (1,054.5) (548.1) (11,171.0) (6,099.2) (3,198.6) (3,058.2) (3,230.3) (3,216.1) 299.4 317.2 235.4 (4.9) (74.7) 3.3 (14.3) 6,730.3 (2,583.4) (170.5) 403.1 86.8 (40.9) (2,304.9) 510.4 1,540.6 BIBIE 70.9 (12.8) (4,618.3) 2,077.9 2,798.7 $2,077.9 (527.9) (720.8) 873.5 $ 640.8 $ 573.2 2,387.5 1,985.4 2,388.3

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