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21 Jun FINANCIAL ANALYSIS PRESENTATION Start by preparing a Po

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 FINANCIAL ANALYSIS PRESENTATION ASSIGNMENT INSTRUCTIONS
OVERVIEW
Each  student  will  prepare  a  10-12  minute  presentation,  summarizing  the  financial  statement
analysis completed on the company that was the focus of the Excel Project.  
INSTRUCTIONS
Start by preparing a PowerPoint presentation that concisely summarizes the following key areas:
1. INTRODUCTION: A general description of the Company, its products/services, industry,
primary customer base, and major competitors
2. INCOME:  A  discussion  of  the  company's  primary  sources  of  core  and  comprehensive
income, major sources of non-operating or transitory earnings (if applicable), and quality
of earnings
3. CASH  FLOWS:  A  discussion  of  cash  flow  trends  for  each  of  the  3  major  categories
(operating, investing, financing)
4. RATIO ANALYSIS: Key conclusions drawn from the company's last 3 years of ratios, as
well as a comparison to industry averages and competitors.  Should include a discussion
for  each  major  category  of  ratios,  including  liquidity,  solvency/leverage,  efficiency,
profitability, and market value.
5. MARKET  VALUATION:  A  consideration  of  any  unrecorded  assets,  as  well  as  the
company's general market value or stock price trends.
6. STRENGTHS/WEAKNESSES:  Summarize  the  company's  key  financial  strengths  and
weaknesses, in comparison to its competitors and the industry.
7. FUTURE  PROSPECTS:  Discuss  what  conclusions  you  were  able  to  draw  regarding  the
company's future prospect from your financial analysis and research.
8. BIBLICAL WORLDVIEW: Evaluate the company's financial position and organizational
strategy in relation to a Biblical worldview.
Presentations should include in-text citations (APA style, current edition) that reference at least 8
scholarly/trade sources, the course textbook, and the Bible. 

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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