The former deducts the inventory figure from the current assets value. In the years under consideration, both the current ratio and the quick ratio of McDonald's decreased (see table 1). In that regard, the company's ability to settle its debts in the short run seems to have been impaired within the period under consideration. It is however important to note that with a current ratio and quick ratio of more

Financial Statement Usefulness The Balance Sheet is a statement that tells the assets, liabilities, and net worth of an individual or business at a specific date. It provides information about the nature and amounts of investments, obligations to creditors, and owner's resources and helps in predicting the amounts, timing, and uncertainty of future cash flows (Kieso, 2008). The Balance Sheet is used to access liquidity, solvency, and financial stability. For an individual,

Financial Statements The income statement and the balance sheet are some of the most commonly used financial statements, both at a personal and corporate level. In this text, I concern myself with how I can utilize the balance sheet in my day-to-day life. Further, I look at how a business manager could benefit by having a comprehensive understanding of this crucial financial statement. Lastly, I discuss how I may apply

The fourth financial statement, called a "statement of shareholders' equity," shows changes in the interests of the company's shareholders over time. ("Beginners' Guide...," 2007) To be considered profitable, a company's assets must equal, or "balance" the sum of its liabilities and shareholders' equity. Assets = Liabilities + Shareholders' Equity the following formula summarizes what a company's balance sheet pictures, followed by figure 5, which depicts this particular formula. ("Beginners' Guide...,"

HP: Financial Statement Analysis There are many approaches one could use to analyze the health, stability as well as financial performance of a business entity. One such approach involves a thorough review of the financial statements of the concerned entity. Regarded the leading personal computers manufacturer in the world, Hewlett-Packard - HP amongst other things concerns itself with the manufacture as well as development of both computer hardware and software. In

Using these different techniques reveals different information about the company. So for example we know that Tesco earned £67.6 billion in revenue last year, and that this is an increase of 8.1% over the previous year. This is the top line number; we can see that the bottom line number is £3.8 billion, an increase of 11.7% from the year before. This basic analysis reveals that the company has