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The analysis is on McDonalds years 2020, 2019, 2018. and the competitors are Burgerking and Windys Excel Project: Part III Instructions Common Sized Balance Sheets (Tabs 12), Common Sized Income Statements (Tab 13), Horizontal Analysis Balance Sheets (Tab 14), Horizontal Analysis Income Statements (Tab 15), and Projected Financial Statements (Tabs 16-18) · Continue in the same Excel workbook prepared in Week 4, adding the following tabs: · The 12th tab in your Financial Statement Analysis Template must be labeled Common Sized Balance Sheets. · Set-up like the Historical Balance Sheets (Tab 3), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Balance Sheets for the calculations. “Total Assets” should be used as the base for all common sized calculations on the Balance Sheets. Common sized percentages should be calculated for all three historical years presented. · See Exhibit A for a partial example of this tab. · The 13th tab in your Financial Statement Analysis Template must be labeled Common Sized Income Statements. · Set-up like the Historical Income Statements (Tab 2), this worksheet should use formulas to calculate the common sized percentages, linking to the Historical Income Statements for the calculations. “Revenue” or “Total Revenue” (depending on your company) should be used as the base for all common sized calculations on the Income Statements. Common sized percentages should be calculated for all three historical years presented. · The 14th tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Balance Sheets. · Start by copying and pasting the Historical Balance Sheets from Tab 3 to this worksheet. Then, add dollar and percentage change columns between each of the set of historical years. · See Exhibit B for an example of this tab. · The 15th tab in your Financial Statement Analysis Template must be labeled Horizontal Analysis of Income Statements. · Start by copying and pasting the Historical Income Statements from Tab 2 to this worksheet. Then, add dollar and percentage change columns between each of the set of historical years. · The 16th tab in your Financial Statement Analysis Template must be labeled Projected Income Statements. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report. · The 17th tab in your Financial Statement Analysis Template must be labeled Projected Balance Sheets. Three years of projected statements should be included. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report. · The 18th tab in your Financial Statement Analysis Template must be labeled Projected Statement of Cash Flows. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report. · Other information relating to projected tabs: · Projections should be based on research performed on your company and its industry. Use historical, trend, ratio data and current and future economic projections as well as information from the company’s MD&A to aid in preparing projections. · Clearly state your assumptions in a text box at the bottom of each tab. Cite sources for assumptions based on research. · The statements should be consistent, reasonable, and accurate. Areas that will be checked for accuracy include: · The Balance Sheets should balance for all years presented. · Retained earnings should be properly calculated using the prior year’s balance, net income, and dividends. · The Ending Cash Balance on the Statement of Cash Flows should agree to the Cash Balance shown on the Balance Sheet for the same year. · Net Income on the Income Statements should match what is reported on the top of the Statement of Cash Flows (if indirect method is used). · Other instructions: · The Excel workbook should be professionally formatted. Professional formatting includes: · All numbers are formatted similarly. The use of decimals, commas for thousands, and other formatting is consistent. · Dollar signs are included in the first and last numbers of each column. · Subtotals and totals are preceded by a single underline. Totals are followed by a double underline. · Line descriptions are indented/bolded in a manner that makes the spreadsheet easy to read. · All common sized, horizontal analysis, and projection items should be calculated using formulas. Totals and subtotals should also be calculated using formulas.  For an example of which cells may need formulas, please see Exhibits A & B. This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 6. ACCT 370 Exhibit A: Example Common Sized Balance Sheets (Tab 12, Partial View) (IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.) Exhibit B: Example Horizontal Analysis of Balance Sheets (Tab 14, Partial View) (IMPORTANT NOTE: Only Partial Balance Sheet shown. Your Balance Sheet should include Liabilities and Stockholders’ Equity as well.) Company Information ACCT 370 Excel Project McDonald’s Company Information Company Name McDonalds Ticker Symbol MCD Industry Fast Food Restaurant Franchise Products and Services Offered McDonald’s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, McDonalds Fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, McCafé beverages and other beverages. McDonald’s restaurants in the U.S. and many international markets offer a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches, oatmeal, breakfast burritos and hotcakes. In addition to these menu items, the restaurants sell a variety of other products during limited-time promotions. Taste, quality, choice, value and nutrition are important to our customers, and we are continuously evolving our menu to meet our customers needs, including testing new products on an ongoing basis. Major Competitors Burger king (owned by Restraunt Brands International Inc.), Windys, and Chick-Fill-a Historical Income Statements McDonalds Consolidated Statement of Income Years ended in 2020, 2019, 2018 $s in Millions, except per share data REVENUES 2020 2019 2018 Sales by Company-operated restaurants $ 8,139.2 $ 9,420.8 $ 10,012.7 Revenues from franchised restaurants 10,726.1 11,655.7 11,012.5 Other revenues 342.5 287.9 232.7 Total revenues 19,207.8 21,364.4 21,257.9 OPERATING COSTS AND EXPENSES Company-operated restaurant expenses Food & paper 2,564.2 2,980.3 3,153.8 Payroll & employee benefits 2,416.4 2,704.4 2,937.9 Occupancy & other operating expenses 2,000.6 2,075.9 2,174.2 Franchised restaurants-occupancy expenses 2,207.5 2,200.6 1,973.3 Other restaurant expenses 267.0 223.8 186.1 Selling, general & administrative expenses Depreciation and amortization 300.6 262.5 214.8 Other 2,245.0 1,966.9 1,985.4 Other operating (income) expense, net (117.5) (119.8) (190.2) Total operating costs and expenses 11,883.8 12,294.6 12,435.3 Operating income 7,324.0 9,069.8 8,822.6 Interest expense-net of capitalized interest of $6.0, $7.4 and $5.6 1,218.1 1,121.9 981.2 Nonoperating (income) expense, net (34.8) (70.2) 25.3 Income before provision for income taxes 6,140.7 8,018.1 7,816.1 Provision for income taxes 1,410.2 1,992.7 1,891.8 Net income 4,730.5 6,025.4 5,924.3 Earnings per common share–basic 6.4 8.0 7.6 Earnings per common share–diluted 6.3 7.9 7.5 Dividends declared per common share 5.0 4.7 4.2 Weighted-average shares outstanding–basic 744.6 758.1 778.2 Weighted-average shares outstanding–diluted $ 750.1 $ 764.9 $ 785.6 Historical Balance Sheets McDonalds Consolidated Balance Sheet Years ended in 2020, 2019, 2018 $s in Millions, except per share data ASSETS 2020 2019 2018 Current assets Cash and equivalents $ 3,449.1 $ 898.5 $ 866.0 Accounts and notes receivable 2,110.3 2,224.2 2,441.5 Inventories, at cost, not in excess of market 51.1 50.2 51.1 Prepaid expenses and other current assets 632.7 385.0 694.6 Total current assets 6,243.2 3,557.9 4,053.2 Other assets Investments in and advances to affiliates 1,297.2 1,270.3 1,202.8 Goodwill 2,773.1 2,677.4 2,331.5 Miscellaneous 3,527.4 2,584.0 2,381.5 Total other assets 7,597.7 6,531.7 5,915.8 Lease right-of-use asset, net 13,827.7 13,261.2 Property and equipment Property and equipment, at cost 41,476.5 39,050.9 37,193.6 Accumulated depreciation and amortization (16,518.3) (14,890.9) (14,350.9) Net property and equipment 24,958.2 24,160.0 22,842.7 Total assets 52,626.8 47,510.8 32,811.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 741.3 988.2 1,207.9 Lease liability 701.5 621.0 Income taxes 741.1 331.7 228.3 Other taxes 227.0 247.5 253.7 Accrued interest 388.4 337.8 297.0 Accrued payroll and other liabilities 1,138.3 1,035.7 986.6 Current maturities of long-term debt 2,243.6 59.1 Total current liabilities 6,181.2 3,621.0 2,973.5 Long-term debt 32,196.8 34,118.1 31,075.3 Long-term lease liability 13,321.3 12,757.8 Long-term income taxes 1,970.7 2,265.9 2,081.2 Deferred revenues - initial franchise fees 702.0 660.6 627.8 Other long-term liabilities 1,054.1 979.6 1,096.3 Deferred income taxes 2,025.6 1,318.1 1,215.5 Shareholders’ equity (deficit) Preferred stock, no par value; authorized – 165.0 million shares; issued – none Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares 16.6 16.6 16.6 Additional paid-in capital 7,903.6 7,653.9 7,376.0 Retained earnings 53,908.1 52,930.5 50,487.0 Accumulated other comprehensive income (loss) (2,586.8) (2,482.7) (2,609.5) Common stock in treasury, at cost; 915.2 and 914.3 million shares (67,066.4) (66,328.6) (61,528.5) Total shareholders’ equity (deficit) (7,824.9) (8,210.3) (6,258.4) Total liabilities and shareholders’ equity (deficit) $ 52,626.8 $ 47,510.8 $ 32,811.2 McDonalds Corporation 2020 Annual Report 36 & 40 Historical Statement of Cash Fl McDonalds Consolidated Statement of Cash Flows Years ended in 2020, 2019, 2018 $s in Millions, except per share data Operating activities 2020 2019 2018 Net income $ 4,730.5  $ 6,025.4  $ 5,924.3  Adjustments to reconcile to cash provided by operations Charges and credits: Depreciation and amortization 1,751.4  1,617.9  1,482.0  Deferred income taxes 6.4  149.7  102.6  Share-based compensation 92.4  109.6  125.1  Net gain on sale of restaurant businesses (28.2) (128.2) (308.8) Other (75.2) 49.2  114.2  Changes in working capital items: Accounts receivable (6.8) 27.0  (479.4) Inventories, prepaid expenses and other current assets (68.6) 128.8  (1.9) Accounts payable (137.5) (26.8) 129.4  Income taxes (43.6) 173.4  (33.4) Other accrued liabilities 44.4 (3.9) (87.4) Cash provided by operations 6,265.2  8,122.1  6,966.7 Investing activities Capital expenditures (1,640.8) (2,393.7) (2,741.7) Purchases of restaurant and other businesses (66.1) (540.9) (101.7) Sales of restaurant businesses 76.3  340.8  530.8  Sales of property 27.4  151.2  160.4  Other 57.4  (628.5) (302.9) Cash used for investing activities (1,545.8) (3,071.1) (2,455.1) Financing activities Net short-term borrowings (893.1) 799.2  95.9  Long-term financing issuances 5,543.0  4,499.0  3,794.5  Long-term financing repayments (2,411.7) (2,061.9) (1,759.6) Treasury stock purchases (907.8) (4,976.2) (5,207.7) Common stock dividends (3,752.9) (3,581.9) (3,255.9) Proceeds from stock option exercises 295.5  350.5  403.2  Other (122.0) (23.5) (20.0) Cash used for financing activities (2,249.0) (4,994.8) (5,949.6) Effect of exchange rates on cash and equivalents 80.2  (23.7) (159.8) Cash and equivalents increase (decrease) 2,550.6  32.5  (1,597.8) Cash and equivalents at beginning of year 898.5  866.0  2,463.8  Cash and equivalents at end of year 3,449.1  898.5  866.0 Supplemental cash flow disclosures Interest paid 1,136.0  1,066.5  959.6  Income taxes paid $ 1,441.9  $ 1,589.7  $ 1,734.4 Burger King Income Statements Burger King (Restraunt Brands International Inc.) Consolidated Statements Of Operations / Comperhensive Income Years ended in 2020, 2019, 2018 $s in Millions, except per share data Revenues: 2020 2019 2018 Sales $ 2,013  $ 2,362  $ 2,355  Franchise and property revenues 2,955  3,241  3,002  Total revenues 4,968  5,603  5,357  Operating costs and expenses: Cost of sales 1,610  1,813  1,818  Franchise and property expenses 528  540  422  Selling, general and administrative expenses 1,264  1,264  1,214  (Income) loss from equity method investments 39  (11) (22) Other operating expenses (income), net 105  (10) 8  Total operating costs and expenses 3,546  3,596  3,440  Income from operations 1,422  2,007  1,917  Interest expense, net 508  532  535  Loss on early extinguishment of debt 98  23  —  Income before income taxes 816  1,452  1,382  Income tax expense 66  341  238  Net income 750  1,111  1,144  Net income attributable to noncontrolling interests (Note 12) 264  468  532  Net income attributable to common shareholders 486  643  612  Earnings per common share: Basic 1.61  2.40  2.46  Diluted 1.60  2.37  2.42  Weighted average shares outstanding: Basic 302  268  249  Diluted 468  469  473 Net income 750  1,111  1,144  Foreign currency translation adjustment 332  409  (831) Net change in fair value of net investment hedges, net of tax of $60, $32, and $(101) (242) (86) 282  Net change in fair value of cash flow hedges, net of tax of $91, $29, and $7 (244) (77) (19) Amounts reclassified to earnings of cash flow hedges, net of tax of $(27), $(6), and $(5) 73  15  14  Gain (loss) recognized on defined benefit pension plans and other items, net of tax of $3, $1, and $0 (16) (2) 1  Other comprehensive income (loss) (97) 259  (553) Comprehensive income (loss) 653  1,370  591  Comprehensive income (loss) attributable to noncontrolling interests 224  571  276  Comprehensive income (loss) attributable to common shareholders $ 429  $ 799  $ 315 Burger King Balance Sheets Burger King (Restraunt Brands International Inc.) Balance Sheet Years ended in 2020, 2019, 2018 $s in Millions, except per share data ASSETS 2020 2019 2018 Current assets: Cash and cash equivalents $ 1,560  $ 1,533  $ 913 Accounts and notes receivable, net of allowance of $42 and $13, respectively 536  527  452 Inventories, net 96  84  75 Prepaids and other current assets 72  52  60 Total current assets 2,264  2,196  1,500 Property and equipment, net of accumulated depreciation and amortization of $879 and $746, respectively 2,031  2,007  1,996 Operating lease assets, net 1,152  1,176  — Intangible assets, net 10,701  10,563  10,463 Goodwill 5,739  5,651  5,486 Net investment in property leased to franchisees 66  48  54 Other assets, net 824  719  642 Total assets 22,777  22,360  20,141 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts and drafts payable 464  644  513 Other accrued liabilities 835  790  637 Gift card liability 191  168  167 Current portion of long-term debt and finance leases 111  101  91 Total current liabilities 1,601  1,703  1,408 Long-term debt, net of current portion 12,397  11,759  11,823 Finance leases, net of current portion 315  288  226 Operating lease liabilities, net of current portion 1,082  1,089  — Other liabilities, net 2,236  1,698  1,547 Deferred income taxes, net 1,425  1,564  1,519 Total liabilities 19,056  18,101  16,523 Commitments and contingencies (Note 16) Shareholders’ equity: Common shares, no par value; Unlimited shares authorized at December 31, 2020 and December 31, 2019; 304,718,749 shares issued and outstanding at December 31, 2020; 298,281,081 shares issued and outstanding at December 31, 2019 2,399  2,478  1,737 Retained earnings 622  775  674 Accumulated other comprehensive income (loss) (854) (763) (800) Total Restaurant Brands International Inc. shareholders’ equity 2,167  2,490  1,611 Noncontrolling interests 1,554  1,769  2,007 Total shareholders’ equity 3,721  4,259  3,618 Total liabilities and shareholders’ equity $ 22,777 $ 22,360 $ 20,141 Burger King Cash Flows Burger King (Restraunt Brands International Inc.) Statement of Cash Flows Years ended in 2020, 2019, 2018 $s in Millions, except per share data Cash flows from operating activities: 2020 2019 2018 Net income $ 750  $ 1,111  $ 1,144  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 189  185  180  Premiums paid and non-cash loss on early extinguishment of debt 97  16  —  Amortization of deferred financing costs and debt issuance discount 26  29  29  (Income) loss from equity method investments 39  (11) (22) Loss (gain) on remeasurement of foreign denominated transactions 100  (14) (33) Net (gains) losses on derivatives 32  (49) (40) Share-based compensation expense 74  68  48  Deferred income taxes (208) 58  29  Other 28  6  5  Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (30) (53) 19  Inventories and prepaids and other current assets (10) (15) (7) Accounts and drafts payable (183) 112  41  Other accrued liabilities and gift card liability 16  (51) (219) Tenant inducements paid to franchisees (22) (54) (52) Other long-term assets and liabilities 23  138  43  Net cash provided by operating activities 921  1,476  1,165  Cash flows from investing activities: Payments for property and equipment (117) (62) (86) Net proceeds from disposal of assets, restaurant closures and refranchisings 12  8  8  Settlement/sale of derivatives, net 33  24  17  Other investing activities, net (7) —  17  Net cash used for investing activities (79) (30) (44) Cash flows from financing activities: Proceeds from issuance of long-term debt 5,235  2,250  75  Repayments of long-term debt and finance leases (4,708) (2,266) (74) Payment of financing costs (43) (50) (3) Payment of dividends on common shares and distributions on Partnership exchangeable units (959) (901) (728) Repurchase of Partnership exchangeable units (380) —  (561) Proceeds from stock option exercises 82  102  61  (Payments) proceeds from derivatives (46) 23  —  Other financing activities, net (2) —  (55) Net cash used for financing activities (821) (842) (1,285) Effect of exchange rates on cash and cash equivalents 6  16  (20) Increase (decrease) in cash and cash equivalents 27  620  (184) Cash and cash equivalents at beginning of period 1,533  913  1,097  Cash and cash equivalents at end of period 1,560  1,533  913  Supplemental cash flow disclosures: Interest paid 463  584  561  Income taxes paid $ 267  $ 248  $ 433 Windys Income Statements The Wendys Company and Subidiaries Consolidated Statements Of Operations / Comperhensive Income Years ended in 2020, 2019, 2018 $s in Millions, except per share data Revenues: 2021/2020 2019 2018 Sales $ 722,764  $ 707,485  $ 651,577  Franchise royalty revenue and fees 444,749  428,999  409,043  Franchise rental income 232,648  233,065  203,297  Advertising funds revenue 333,664  339,453  326,019  1,733,825  1,709,002  1,589,936  Costs and expenses: Cost of sales 614,907  597,530  548,588  Franchise support and other costs 26,464  43,686  25,203  Franchise rental expense 125,613  123,929  91,104  Advertising funds expense 345,360  338,116  321,866  General and administrative 206,876  200,206  217,489  Depreciation and amortization 132,775  131,693  128,879  System optimization gains, net (3,148) (1,283) (463) Reorganization and realignment costs 16,030  16,965  9,068  Impairment of long-lived assets 8,037  6,999  4,697  Other operating income, net (8,397) (11,418) (6,387) 1,464,517  1,446,423  1,340,044  Operating profit 269,308  262,579  249,892  Interest expense, net (117,737) (115,971) (119,618) Loss on early extinguishment of debt —  (8,496) (11,475) Investment (loss) income, net (225) 25,598  450,736  Other income, net 1,449  7,771  5,381  Income before income taxes 152,795  171,481  574,916  Provision for income taxes (34,963) (34,541) (114,801) Net income 117,832  136,940  460,115  Net income per share: Basic .53  .60  1.93  Diluted .52  .58  1.88  Net income 117,832  136,940  460,115  Other comprehensive income (loss), net: Foreign currency translation adjustment 4,187  7,845  (16,524) Change in unrecognized pension loss: Unrealized gains arising during the period —  —  156  Income tax provision —  —  (39) Final settlement of pension liability —  —  932  —  —  1,049  Other comprehensive income (loss), net 4,187  7,845  (15,475) Comprehensive income $ 122,019 $ 144,785 $ 444,640 Windys Cash Flows The Wendys Company and Subidiaries Statement of Cash Flows Years ended in 2020, 2019, 2018 $s in Millions, except per share data Cash flows from operating activities: 2021/2020 2019 2018 Net income $ 117,832  $ 136,940  $ 460,115  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 132,775  131,693  128,879  Share-based compensation 18,930  18,676  17,918  Impairment of long-lived assets 8,037  6,999  4,697  Deferred income tax 10,266  837  (6,568) Non-cash rental expense (income), net 28,937  28,202  (17,043) Change in operating lease liabilities (40,905) (41,911) —  Net receipt (recognition) of deferred vendor incentives 2,495  (501) 139  System optimization gains, net (3,148) (1,283) (463) Gain on sale of investments, net —  (24,496) (450,000) Distributions received from TimWen joint venture 8,376  13,400  13,390  Equity in earnings in joint ventures, net (6,096) (8,673) (8,076) Long-term debt-related activities, net (see below) 6,723  15,317  18,673  Other, net (6,438) (4,838) 5,178  Changes in operating assets and liabilities: Accounts and notes receivable, net (16,243) 16,935  13,226  Inventories (841) (163) (434) Prepaid expenses and other current assets (8,780) (1,569) 6,824  Advertising funds restricted assets and liabilities 49,052  (2,720) 13,955  Accounts payable 1,620  1,054  (145) Accrued expenses and other current liabilities (18,231) 5,034  23,963  Net cash provided by operating activities 284,361  288,933  224,228  Cash flows from investing activities: Capital expenditures (68,969) (74,453) (69,857) Acquisitions (4,879) (5,052) (21,401) Dispositions 6,091  3,448  3,223  Proceeds from sale of investments 169  24,496  450,000  Notes receivable, net (662) (3,370) 959  Payments for investments —  —  (13) Net cash (used in) provided by investing activities (68,250) (54,931) 362,911  Cash flows from financing activities: Proceeds from long-term debt 153,315  850,000  934,837  Repayments of long-term debt (191,462) (899,800) (894,501) Repayments of finance lease liabilities (8,383) (6,835) (5,571) Deferred financing costs (2,122) (14,008) (17,340) Repurchases of common stock, including accelerated share repurchase (62,173) (217,797) (269,809) Dividends (64,866) (96,364) (80,532) Proceeds from stock option exercises 23,361  28,328  45,228  Payments related to tax withholding for share-based compensation (5,577) (8,820) (11,805) Contingent consideration payment —  —  (6,269) Net cash used in financing activities (157,907) (365,296) (305,762) Net cash provided by (used in) operations before effect of exchange rate changes on cash 58,204  (131,294) 281,377  Effect of exchange rate changes on cash 1,330  3,489  (7,689) Net increase (decrease) in cash, cash equivalents and restricted cash 59,534  (127,805) 273,688  Cash, cash equivalents and restricted cash at beginning of period 358,707  486,512  212,824  Cash, cash equivalents and restricted cash at end of period 418,241  358,707  $ 486,512  Detail of cash flows from operating activities: Long-term debt-related activities, net: Loss on early extinguishment of debt —  8,496  11,475  Accretion of long-term debt 1,161  1,272  1,255  Amortization of deferred financing costs 5,562  5,549  5,943  6,723  15,317  18,673  Supplemental cash flow information: Cash paid for: Interest 136,228  138,270  137,607  Income taxes, net of refunds 16,202  34,798  102,827  Supplemental non-cash investing and financing activities: Capital expenditures included in accounts payable 3,673  6,026  6,460  Finance leases 34,918  50,061  6,569  Reconciliation of cash, cash equivalents and restricted cash at end of period: Cash and cash equivalents 306,989  300,195  431,405  Restricted cash 33,973  34,539  29,860  Restricted cash, included in Advertising funds restricted assets 77,279  23,973  25,247  Total cash, cash equivalents and restricted cash $ 418,241  $ 358,707  $ 486,512 Windys Balance Sheet The Wendys Company and Subidiaries Balance Sheet Years ended in 2020, 2019, 2018 $s in Millions, except per share data ASSETS 2020/2021 2019 2018 Current assets: Cash and cash equivalents $ 306,989  $ 300,195  $ 431,405 Restricted cash 33,973  34,539  29,860 Accounts and notes receivable, net 109,891  117,461  109,805 Inventories 4,732  3,891  3,687 Prepaid expenses and other current assets 89,732  15,585  14,452 Advertising funds restricted assets 142,306  82,376  76,509 Total current assets 687,623  554,047  665,718 Properties 915,889  977,000  1,023,267 Finance lease assets 206,153  200,144  189,969 Operating lease assets 821,480  857,199  — Goodwill 751,049  755,911  747,884 Other intangible assets 1,224,960  1,247,212  1,294,153 Investments 44,574  45,949  47,660 Net investment in sales-type and direct financing leases 268,221  256,606  226,477 Other assets 120,057  100,461  96,907 Total assets 5,040,006  4,994,529  4,292,035 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt 28,962  22,750  23,250 Current portion of finance lease liabilities 12,105  11,005  8,405 Current portion of operating lease liabilities 45,346  43,775  — Accounts payable 31,063  22,701  21,741 Accrued expenses and other current liabilities 155,321  165,272  150,636 Advertising funds restricted liabilities 140,511  84,195  80,153 Total current liabilities 413,308  349,698  284,185 Long-term debt 2,218,163  2,257,561  2,305,552 Long-term finance lease liabilities 506,076  480,847  447,231 Long-term operating lease liabilities 865,325  897,737  — Deferred income taxes 280,755  270,759  269,160 Deferred franchise fees 89,094  91,790  92,232 Other liabilities 117,689  129,778  245,226 Total liabilities 4,490,410  4,478,170  3,643,586 Commitments and contingencies Stockholders’ equity: Common stock, $0.10 par value; 1,500,000 shares authorized; 47,042  47,042  47,042 470,424 shares issued; 224,268 and 224,889 shares outstanding, respectively Additional paid-in capital 2,899,276  2,874,001  2,884,696 Retained earnings 238,674  185,725  146,277 Common stock held in treasury, at cost; 246,156 and 245,535 shares, respectively (2,585,755) (2,536,581) (2,367,893) Accumulated other comprehensive loss (49,641) (53,828) (61,673) Total stockholders’ equity 549,596  516,359  648,449 Total liabilities and stockholders’ equity $ 5,040,006 $ 4,994,529 $ 4,292,035 ) ) 4,292,035 Historical and Competitor Ratio McDonald’s Competitor Ratio Analysis Historical Ratios Years ended in 2020, 2019, 2018 $s in Millions, except per share data 2020 2019 2018 Burger King Windys Industry Average Liquidity Current Ratio 1.01 1.41 1.66 1.34 Chris Thomas: Chris Thomas: Industry average Current Ratio retrieved from https://www.macrotrends.net/stocks/charts/QSR/restaurant-brands/current-ratio Quick Ratio 0.9 1.02 1 Chris Thomas: Chris Thomas: Industry average for Quick Ratio retrieved from https://wahospitality.org/blog/trouble-ahead-look-for-these-five-red-flags-in-your-restaurant-financial-statements/ Leverage Ratios Debt to Total Assets Ratio 1.15 0.89 0.55 Debt to Equity Ratio 0 0 0 5.12 8.17 0.56 Chris Thomas: Chris Thomas: Industry average for Debit to Equity Ratio retrieved from https://pos.toasttab.com/blog/on-the-line/restaurant-debt-to-equity-ratio Long-Term Debt to Equity 0 0 0 0.56 Chris Thomas: Chris Thomas: Industry average for Debit to Equity Ratio retrieved from https://pos.toasttab.com/blog/on-the-line/restaurant-debt-to-equity-ratio Times Intrest Earned Ratio 6.04 7.58 2.3 3.25 Chris Thomas: Chris Thomas: retrieved from https://www.readyratios.com/sec/industry/20/ Activity Ratios Inventory Turnover 2 14 1 79 Chris Thomas: Chris Thomas: Industry average for Inventory Turnover retrieved from https://wahospitality.org/blog/trouble-ahead-look-for-these-five-red-flags-in-your-restaurant-financial-statements/ Fixed Assets Turnover 1059 869 Chris Thomas: Chris Thomas: retrieved from …