Franchised restaurants-occupancy expenses

info

ACCT 370 Excel Project
McDonalds
Company Information
Student’s Name
Company Name McDonalds
Ticker Simple MCD
Industry Global restaurant industry.
Product and service offered Fast food
Major Competitors KFC

income statement

McDonalds
Consolidated Statement of Income
As January 2021, Decemeber 2019, decemeber 2018
2020 2019 2018
REVENUES
Sales by Company-operated restaurants $8, 139.2 $9, 420.8 $10, 012.7
Revenues from franchised restaurants 10,726.1 11,655.7 11,012.5
Other revenues 342.5 287.9 232.7
Total revenues 19,207.8 21,364.4 21,257.9
OPERATING COSTS AND EXPENSES
Company-operated restaurant expenses
Food & paper 2,564.2 2,980.3 3,153.8
Payroll & employee benefits 2,416.4 2,704.4 2,937.9
Occupancy & other operating expenses 2,000.6 2,075.9 2,174.2
Franchised restaurants-occupancy expenses 2,207.5 2,200.6 1,973.3
Other restaurant expenses 267.0 223.8 186.1
Selling, general & administrative expenses
Depreciation and amortization 300.6 262.5 214.8
Other 2,245.0 1,966.9 1,985.4
Other operating (income) expense, net -117.5 -119.8 -190.2
Total operating costs and expenses 11,883.8 12,294.6 12,435.3
Operating income 7,324.0 9,069.8 8,822.6
Interest expense-net of capitalized interest of $6.0, $7.4 and $5.6 1,218.1 1,121.9 981.2
Nonoperating (income) expense, net -34.8 -70.2 25.3
Income before provision for income taxes 6,140.7 8,018.1 7,816.1
Provision for income taxes 1,410.2 1,992.7 1,891.8
Net income $4, 730.5 $6,025.40 $ 5, 924.3

Balance sheet

McDonalds
Consolidated Balance Sheet
As January 2021, Decemeber 2019, decemeber 2018
2021 2020
ASSETS
Current assets
Cash and equivalents $ 4, 709.2 $3,449.10
Accounts and notes receivable 1,872.4 2,110.3
Inventories, at cost, not in excess of market 55.6 51.1
Prepaid expenses and other current assets 511.3 632.7
Total current assets 7,148.5 6,243.2
Other assets
Investments in and advances to affiliates 1,201.2 1,297.2
Goodwill 2,782.5 2,773.1
Miscellaneous 4,449.5 3,527.4
Total other assets 8,433.2 7,597.7
Lease right-of-use asset, net 13,552.0 13,827.7
Property and equipment
Property and equipment, at cost 41,916.6 41,476.5
Accumulated depreciation and amortization -17196 -16518.3
Net property and equipment 24,720.6 24,958.2
Total assets $8,433.20 $52, 626.8
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $1,006.80 $741.30
Lease liability 705.5 701.5
Income taxes 360.7 741.1
Other taxes 236.7 227.0
Accrued interest 363.3 388.4
Accrued payroll and other liabilities 1,347.0 1,138.3
Current maturities of long-term debt 2,243.6
Total current liabilities 4,020.0 6,181.2
Long-term debt 35,622.7 35,196.8
Long-term lease liability 13,020.9 13,321.3
Long-term income taxes 1,896.8 1,970.7
Deferred revenues – initial franchise fees 738.3 702.0
Other long-term liabilities 1,081.0 1,054.1
Deferred income taxes 2,075.6 2,025.6
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 16.6 16.6
Additional paid-in capital 8,231.6 7,903.6
Retained earnings 57,534.7 53,908.1
Accumulated other comprehensive income (loss) -2573.7 -2586.8
Common stock in treasury, at cost; 915.8 and 915.2 million shares -67810.2 -67066.4
Total shareholders’ equity (deficit) -4601 -7824.9
Total liabilities and shareholders’ equity (deficit) $52,626.80 $47,510.8

Cash Flow

McDonalds
Consolidated Cash flow statemet
As January 2021, Decemeber 2019, decemeber 2018
In millions Years ended December 31, 2020 2019 2018
Operating activities
Net income $ 4,730.5 $ 6,025.4 $5,924.30
Adjustments to reconcile to cash provided by operations
Charges and credits:
Depreciation and amortization 1,751.4 1,617.9 1,482.0
Deferred income taxes 6.4 149.7 102.6
Share-based compensation 92.4 109.6 125.1
Net gain on sale of restaurant businesses -28.2 -128.2 -308.8
Other -75.2 49.2 114.2
Changes in working capital items:
Accounts receivable -6.8 27.0 -479.4
Inventories, prepaid expenses and other current assets -68.6 128.8 -1.9
Accounts payable -137.5 -26.8 129.4
Income taxes -43.6 173.4 -33.4
Other accrued liabilities 44.4 -3.9 -87.4
Cash provided by operations 6,265.2 8,122.1 6,966.7
Investing activities
Capital expenditures -1,640.80 -2,393.70 -2741.7
Purchases of restaurant and other businesses -66.1 -540.9 -101.7
Sales of restaurant businesses 76.3 340.8 530.8
Sales of property 27.4 151.2 160.4
Other 57.4 -628.5 -302.9
Cash used for investing activities -1,545.80 -3,071.10 -2455.1
Financing activities
Net short-term borrowings -893.1 799.2 95.9
Long-term financing issuances 5,543.0 4,499.0 3,794.5
Long-term financing repayments -2,411.70 -2,061.90 -1759.6
Treasury stock purchases -907.8 -4,976.20 -5207.7
Common stock dividends -3,752.90 -3,581.90 -3255.9
Proceeds from stock option exercises 295.5 350.5 403.2
Other -122 -23.5 -20
Cash used for financing activities -2,249.00 -4,994.80 -5949.6
Effect of exchange rates on cash and equivalents 80.2 -23.7 -159.8
Cash and equivalents increase (decrease) 2,550.6 32.5 -1597.8
Cash and equivalents at beginning of year 898.5 866.0 2,463.8
Cash and equivalents at end of year $ 3,449.1 $ $ 898.5 $ 866.0
Supplemental cash flow disclosures
Interest paid $ 1,136.0 $ $ 1,066.5 $ 959.6
Income taxes paid 1,441.9 1,589.7 1,734.4

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