McDonald's Corporation Annual Report

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•Consolidation •Estimates in financial statements •Revenue recognition •Foreign currency translation •Advertising costs •Share-based compensation •Property and equipment •Goodwill •Long-lived assets Accounting Policies Revenue recognition is made up of sales by company operated restaurants and the fees from the three types of franchised restaurants developmental licensees, affiliates, and conventional franchises. Property and equipment are stated at cost with depreciation and amortization using the straight-line method. The Company considers short-term liquid investments with maturity of 90 days or less to be equivalent to cash. •Financial instruments •Sales of stock by subsidiaries and affiliates •Income tax uncertainties •Per common share information •Statement of cash flows •Sabbatical leave •Fair value measurements •Business combinations •Noncontrolling interests
Financial Analysis Liquidity Ratios The current ratio although lower in 2008 is still well above one meaning current assets should be able to satisfy any shortterm obligations. In Millions of USD 2008 2007 Working Capital 13,382.60 15,279.80 Current Ratio 1.90 2.10 Receivable Turnover Average days’ sales uncollected 1,028.60 165.80 0.35 2.20 Inventory Turnover 122.30 109.70 Average days’ inventory on hand 3.0 3.3
Page 1 and 2: McDonald’s Corporation Annual Rep
Page 3 and 4: • Jim Skinner, CEO Introduction
Page 5 and 6: Stock Market Information • Most r
Page 7 and 8: In Millions of USD Income Statement
Page 9: Statement of Cash Flows •Cash flo
Page 13 and 14: In Millions of USD 2008 0.18 2007 0

McDonald's Corporation Annual Report

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