The following information is available for The Wendy's Company and McDonald's Corporation, and their industry, for a

Question:

The following information is available for The Wendy's Company and McDonald's Corporation, and their industry, for a recent year:

Instructions
(a) Comment on the liquidity of the two companies in comparison with each other, and with the industry.
(b) Comment on the profitability of the two companies in comparison with each other, and with the industry.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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Question Posted: Jun 15, 2017 09:11 AM

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The following information is available for The Wendy's Company and McDonald's Corporation, and their industry, for a

Question:

Inventory turnover 163.0 times Current ratio Gross profit margin 36.7% Profit margin Wendy'sMcDonald's Industry Average 96.5 times127.4 times 2.0:1 31,8% 11.9% 2.3:1 3.3:1 38.5% 8.6% 17.8%

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a Both companies have current ratios that exceed the industry average and therefore enjoy greater li...View the full answer

Financial Accounting Tools for Business Decision Making

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