Suppose McDonalds 2017 financial statements contain the following selected data (in millions). ...
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Accounting
Suppose McDonalds 2017 financial statements contain the following selected data (in millions).
Current assets
$3,385.0
Interest expense
$466.0
Total assets
29,035.0
Income taxes
1,883.0
Current liabilities
2,940.0
Net income
4,459.0
Total liabilities
15,534.0
1.
Working capital.
$445
millions
2.
Current ratio. (Round to 2 decimal places, e.g. 6.25:1.)
1.15
3.
Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.)
54
%
4.
Times interest earned. (Round to 2 decimal places, e.g. 6.25.)
14.61
times
Suppose the notes to McDonalds financial statements show that subsequent to 2017 the company will have future minimum lease payments under operating leases of $17,665.0 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $9,185 million. Recompute the debt to assets ratio after adjusting for this. (Round answer to 0 decimal places, e.g. 62%.)
Debt to assets ratio
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