# Attached you will find the data and all the pie charts, That I

June 11, 2016

Question
PART 2, FINANCIAL OVERVIEW:
Sales and Income Record:
Fiscal Years
Sales
Percent change in sales each year
Net Income
Percent change in net income each
year

2008
16561

2009
15459

2010
16233

4313

-6.65%
4551

5.01%
4946

5.52%

8.68%

2011
18293
12.69
%
5503
11.26
%

2012
18603
1.69%
5465
-0.69%

COMMENTS: Comment on the trends you see in your numbers and on the graph.
Be sure to include comments! The numbers and the chart are meaningless by themselves.
Comment on what you see.
It is apparent that sales and net profit have increased over that time period. The sales went down
in 2009, but the company corrected the issue because they went back up until 2012 with a slight
increase. In 2012 the increase in sales is lower than the years before by a significant amount. The
economy has somewhat leveled out by 2012 at least better than the 2008 recession, and still there
was a decline in net income. I would think that an investor would wait with this information and
see if the company makes any changes to make these numbers increase.

b. Expense Distribution:
Major Expenses
Company-operated restaurant
expenses
Franchised restaurants-occupancy
expenses
expenses
Interest expense
Provision for income taxes

FY 2012
\$
15,224.00
\$
1,527.00
\$
2,455.00
\$
517.00
\$
2,614.00

PIE CHART OF EXPENSES, FY 2012

COMMENTS: Comment on the companys expense distribution.
Company-operated restaurant expenses is the companys top expense. The expense report shows
where the money is being spent by the company. Expense ratios can be used to show if a
relationship exists between operating expenses and volume of sales. It gives an indication of
what portion of sales are consumed by various operating expenses. Just by looking at these
different charts, as an investor I could eyeball which is more. The expenses are 22,337 and the
assets are 35386.5. With the company-operated restaurant expenses costing the most, it shows
the most money is being spent on running the company which is good.

C. Assets Distribution:
Assets
Cash
Accounts receivable
Inventory
Fixed Assets
Other Assets

FY 2012
\$
2,336.10
\$
1,375.30
\$
121.70
\$
24,677.20
\$
6,876.20

PIE CHART OF ASSETS, Year-end FY 2012

COMMENTS: Comment on the companys asset distribution.
The inventory is low due to the constant moving of inventory, it is constantly being purchased
and sold. The fixed assets is very high because McDonalds they have a lot of property. They
have equipment in the stores, and they own the majority of the stores. This is good, because they
could sell these as current assets. The most important factor in my opinion is cash on hand.
Although the cash on hand is not the biggest piece of the pie, there is enough there to pay its
liabilities.

c. Capital Structure:
Capital structure

FY 2012

Current Liabilities
Long-term & Other Liabilities
Common Equity

\$
3,403.10
\$
16,689.80
\$
15,293.60

CAPITAL STRUCTURE PIE CHART, Year-end FY 2012

COMMENTS: Comment on the companys capital structure.
The current liabilities at McDonalds is a small number when compared to its equity and long
term liabilities. This could illustrates a small operating cost. This account comprises of accounts
payable, taxes, interest and payroll. Another reason current liabilities may be low is because
collections and payments happen all the time. Most of its assets are financed by using common
equity, which makes this portion the biggest. The long-term liabilities can be loans, pensions or
tax liabilities. Typically investors want to know if a company have the assets needed to pay for
current liabilities. This gives a view of liquidity and shows how much