PART 2, FINANCIAL OVERVIEW:Sales and Income Record:Fiscal YearsSalesPercent change in sales each yearNet IncomePercent change in net income eachyear2008165612009154592010162334313-6.65%45515.01%49465.52%8.68%20111829312.69%550311.26%2012186031.69%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 downin 2009, but the company corrected the issue because they went back up until 2012 with a slightincrease. In 2012 the increase in sales is lower than the years before by a significant amount. Theeconomy has somewhat leveled out by 2012 at least better than the 2008 recession, and still therewas a decline in net income. I would think that an investor would wait with this information andsee if the company makes any changes to make these numbers increase.b. Expense Distribution:Major ExpensesCompany-operated restaurantexpensesFranchised restaurants-occupancyexpensesSelling, general & administrativeexpensesInterest expenseProvision for income taxesFY 2012$15,224.00$1,527.00$2,455.00$517.00$2,614.00PIE CHART OF EXPENSES, FY 2012COMMENTS: Comment on the companys expense distribution.Company-operated restaurant expenses is the companys top expense. The expense report showswhere the money is being spent by the company. Expense ratios can be used to show if arelationship exists between operating expenses and volume of sales. It gives an indication ofwhat portion of sales are consumed by various operating expenses. Just by looking at thesedifferent charts, as an investor I could eyeball which is more. The expenses are 22,337 and theassets are 35386.5. With the company-operated restaurant expenses costing the most, it showsthe most money is being spent on running the company which is good.C. Assets Distribution:AssetsCashAccounts receivableInventoryFixed AssetsOther AssetsFY 2012$2,336.10$1,375.30$121.70$24,677.20$6,876.20PIE CHART OF ASSETS, Year-end FY 2012COMMENTS: Comment on the companys asset distribution.The inventory is low due to the constant moving of inventory, it is constantly being purchasedand sold. The fixed assets is very high because McDonalds they have a lot of property. Theyhave equipment in the stores, and they own the majority of the stores. This is good, because theycould 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 itsliabilities.c. Capital Structure:Capital structureFY 2012Current LiabilitiesLong-term & Other LiabilitiesCommon Equity$3,403.10$16,689.80$15,293.60CAPITAL STRUCTURE PIE CHART, Year-end FY 2012COMMENTS: Comment on the companys capital structure.The current liabilities at McDonalds is a small number when compared to its equity and longterm liabilities. This could illustrates a small operating cost. This account comprises of accountspayable, taxes, interest and payroll. Another reason current liabilities may be low is becausecollections and payments happen all the time. Most of its assets are financed by using commonequity, which makes this portion the biggest. The long-term liabilities can be loans, pensions ortax liabilities. Typically investors want to know if a company have the assets needed to pay forcurrent liabilities. This gives a view of liquidity and shows how much

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