McDonald s Financials Problem Sets ACC 300 McDonald s Financials The market growth is increasing for the reason of occupied clients not having time to prepare a dish and the comfort factor The food industry is also expanding very quickly because of the circumstances international markets offer In McDonald s example they absolutely have a competitive edge for they have previously influenced many countries and they are successful in these countries Every company in the food industry is vulnerable of dissipating clients thus the industry must depend solely on their brand s appearance and the condition of their goods McDonald s have numerous adversaries but they are presently at the top of the industry in market capitalization with a 39 31 billion cap McDonald s Corporation 2005 Summary organizations financial statements In concluding the financial well being and expansion of the McDonald s Corporation a study of their financial records in the four year course was organized These financial reports involved a study of their balance sheets income statements and cash flow statements from the start of 2008 until 2011 The balance sheet for the four year course involves a summary of the company s assets and also its equity In rechecking the balance sheet a person can infer that cash and equivalents for the year 2008 were documented to be at 2 063 4 million The corporation encountered a reduction in their cash and equivalents in the year 2009 that is documented to be at 1 796 0 million nevertheless by the year end of 2010 the corporation actually surpassed its cash balance from the prior year documented to be at 2 385 0 million It then encountered another reduction in cash and equivalents at the end of 2011 being documented at 2 335 7 million with this reduction being minimal when compared to the reduction within 2008 and 2009 The balance sheet also implies that a balanced increment in the corporation s account receivables on the four year course from 2008 at 931 2 million to 2011 at 1 334 7 million Corporation summary of stocks encountered a minimal reduction in 2009 from the 2008 records fell 5 3 million yet was documented a gain by the end of the years 2010 and 2011 Nearly permanent investments were another region that encountered a minimal decrease in 2009 yet by the year 2011 and 2011 the entries rose Another region also recheck on the balance sheet was the accounts payable Even though the corporation had many assets that decrease in the year 2009 accounts payable encountered a constant raise on the four year course Accrued expenses encountered a big raise in 2009 yet declined by the end of years 2010 and 2011 listing entries only essentially bigger than those listed at the year 2008 Total liabilities rose constantly on the four year course and also the corporations long term liabilities and retained earnings Stocks was balanced in the four year course businessweek com 2012 The income statement of the four year course demonstrates the declines for the corporation in 2009 with the documented entries accumulating from 2001 and 2011 In rechecking the documented values for revenues a person is able to observe that in 2008 McDonald s year ender documented 23 522 4 million In 2009 the corporation encountered a minimal decline in revenue documented at 22 744 7 million but the corporation again used their capabilities to do better again and documented a raise in income for both 2010 at 24 074 6 million and 2011 at 27 006 0 million In rechecking the income statement a person can definitely comprehend the constant rise in operating revenues through the four year course and also a constant raise in gross profit and net income that involved and restricted extra entries businessweek com 2012 The cash flow statement produced an understandable glance for a stockholder at how the corporation functioned The cash flow documentation rises in each factor from net income to cash by functions to common dividends paid In 2008 the corporation listed a net income of 4 313 2 million that constantly rose on the four year course finishing at 5 503 1 million on December 31 2011 Amortization and depreciation started in 2008 at 1 207 8 million and listed a constant rise over the course until 2011 with documented year end of 1 415 0 million A region of affinity is the decline gain on sale of investment in the four year course In 2008 the corporation listed values of 160 1 and at the year end of 2009 only listed at 94 9 but the totals documented for 2010 and 2011 demonstrated no data The cash flow statement also demonstrated a constant decline in the short term and long term debts simultaneously in the four year course businessweek com 2012 Determination of organization s financial health Through the analysis of McDonald s balance sheets cash flow statements and income statements in the four year course a person can conclude that the corporation s financial well being is exceptional reliant on its recorded data and functions The corporation encountered some declines in assets liabilities and revenues for a small amount of time yet also demonstrated its capabilities to return to its feet and integrate the values at the further documents The financial reports demonstrated that the corporation is capable in expanding even when encountering a decline in their financial health How is the corporation s debt securities reported on the financial statements Every debt tool that is available for buying and selling inside two groups and has understood some common terms like the notional amount borrowed amount maturity or renewal date and interest rate Debt securities involves corporate government and municipal bonds CDs collateralized securities like CDOs CMOs GNMAs and zero coupon securities Investopedia 2010 On the financial records the debt securities are documented in the type of bonds collateralized securities and preferred stocks The balance sheet and income statements are summarized to analyze the year end from the year 2008 until 2011 to demonstrate gain patterns and how the cash is reinvested and managed to its investors In 2010 McDonald s arranged a shelf registration form that can permit them to register a supplementary 500 million in dollars of debt securities with the Securities and Exchange Commissions The corporation can then utilize these earnings for capital costs and debt refinancing These financial records will permit capable stockholders and beneficiaries to recheck the debt and assets of the McDonalds