Financial Statements Research Assignment



Financial Statements Research Assignment

Directions: Go to Yahoo Finance and pull up the stock quotes for McDonalds (MCD) and Yum! Brands, Inc. (YUM). You will need to find the Company Profile, the Market Cap, the balance sheet and the income statement for both companies.

Part One: Find out what each of these companies do and how big they are! (4 points)

McDonald’s Company Profile: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Market Cap: _________________________

YUM! Brand’s Company Profile:

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Market Cap: _________________________

Circle One: Are McDonalds and YUM! Brands, Inc. in similar industries? Yes or No

Part Two: Look at the balance sheet for each company. Compare the 2013-2011 figures in the following areas. (2 points for each section of figures, 4 points total)

|McDonalds: |

|Total Current Assets |2013 __________ |2012 __________ 2011 _________ |

|Total Current Liabilities |2013 __________ |2012 __________ 2011 _________ |

|Current Ratio |2013 __________ |2012 __________ 2011 _________ |

| | | |

|Yum! Brands: | | |

|Total Current Assets |2013 __________ |2012 __________ 2011 _________ |

|Total Current Liabilities |2013 __________ |2012 __________ 2011 _________ |

|Current Ratio |2013 __________ |2012 __________ 2011 _________ |

PART THREE: Go to the income statement. This financial statement looks at a company’s Revenues, Expenses and Cost accounts. Obviously, you want to turn a profit. Find the following information, calculate the Return on Sales and then compare the two companies: (2 points for each section of figures, 4 points total)

| | | | |

|McDonald’s: | | | |

|Total Revenue |2013 __________ |2012 __________ |2011 __________ |

|Total Operating Expenses |2013 __________ |2012 __________ |2011 __________ |

|Income Before Tax |2013 __________ |2012 __________ |2011 __________ |

|Net Income |2013 __________ |2012 __________ |2011 __________ |

|Return on Sales |2013 __________ |2012 __________ |2011 __________ |

| | | | |

| | | | |

| | | | |

|Yum! Brands: | | | |

|Total Revenue |2013 __________ |2012 __________ |2011 __________ |

|Total Operating Expenses |2013 __________ |2012 __________ |2011 __________ |

|Income Before Tax |2013 __________ |2012 __________ |2011 __________ |

|Net Income |2013 __________ |2012 __________ |2011 __________ |

|Return On Sales |2013 __________ |2012 __________ |2011 __________ |

Calculation of Current Ratio and Return on Sales (3 points): Use the space below to show me how you calculated the Current Ratio and Return on Sales #’s. You will be using these numbers when you do your analysis paper so make sure you numbers are correct. Feel free to jot down some of your initial analysis here as well…

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Name: _______________

Date: ________________

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