Time Value of Money

1. 1360
2. 153.5
3. 16years/ 22 years
4. 2964

Present and Future Value

Present And Future Value
#1: 1.683 * 2000 = 3366
#2: 1.405 * 1000 = 1405
#3: 1.050 * 1000 = 1050
Present And Future Values of Annuities
#1: $200 * 31.772 = $6354.40
#2: $50,000/ 7.843 = $6375.11
#3: $4000/ 3.240 = $1234.57

McDonalds income statement

 McDonald’s has a variety of different ways to generate revenue. Being that McDonalds is also a Franchise it generates some of it revenue the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald’s has also increased its shareholders dividends in the last 25 consecutive years, making it one out of the 500 S&P Dividend Aristocrats. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald’s generates revenue from sales by its company-operated restaurants as well as fees from its franchise restaurants. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales along with minimum rent payments, and initial fees. Revenues from restaurants licensed to affiliates and developmental licensees include royalties based on a percent of sales, and generally include initial fees.

The income statement of the billion dollar company “McDonalds” slightly changed over time. The growth profit came up since December 31, 2009 from 2,353,400 to 2,159,900 to 2,396,400 to 2,606,500 since last year as of September 30, 2010. The total revenue stayed steady in December of 2009, and then went down in March, 2010 but back up and on a steady pace since June 30, 2010 to September 30, 2010. The numbers ranged from 5,973,400- 5,610,100- 5,945,500- 6,304,900 thousands. The operating income was 1,826,300 in December 2009, to 1,674,100 in March 2010. Then from June 2010 to September 30 it was 1,845,300- 2,096,500. The Net incomes from the shares were $1,216,800 to $1,089,800 to $1,225,800 to $1,388,400 from the months listed above.

McDonalds uses the straight line depreciation method in the income statement. The most recent depreciation we found online was the statement for December of 2009. Total depreciation for that year was $1,216,200. For 2008, it was $1,207,800, for 2007, it was $1,214,100 and for 2006 it equaled $1,249,900 McDonald's Corporation's average age of depreciable property, plant and equipment deteriorated from 2007 to 2008 and from 2008 to 2009. As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. As of December 31, 2005 McDonalds Corporation's accumulated depreciation valued at 9,989,200 a year later in 2006 it valued at 10,964,500; in 2007 at 11,219,000; in 2008 valued 10,897,900; and in 2009 at 11,909,000.

 McDonald’s uses the cash method, which is very simple to use, because it's usually obvious when you receive money from a customer or other payer, or when you pay an expense with cash, credit card or a check. When money comes in or goes out, it's recorded and recognized for tax purposes. 

McDonald's Corporation

McDonald’s is one of the largest series of fast food restaurants in the world. McDonald’s is either operated by one of the many franchises, affiliates or by the corporation. Most of the revenues come from the millions of fees and royalties by the individual franchises. Since its early beginnings in the 1940s, the two brothers Richard and Maurice McDonald (with the assistance of Ray Croc) revolutionized fast food restaurants being one of the first to introduce to the"Speedee Service System" of what would be recognized today for fast food stores. The first store that was ever opened was in Illinois, which is now the headquarters today and just kept on growing. Than in 1967, the first publicized mascot for McDonald’s became the famous clown known today as Ronald McDonald. As of today, it has operations of over 31,000 stores worldwide and over 119 countries. Its main services include sales of hamburgers, fries, cheeseburgers, breakfast items, shakes and desserts of variety of choices. As of today, the McDonald’s franchise has undergone many drastic changes. For example, adding other brands such as Piles Café and McCafe to its list of growing restaurants. It also includes Lots of indoor and outdoor playgrounds that were added to some of the restaurants in order to provide a friendlier environment. Some now are even connected to gas stations, convenience stores and inside of Wal-Mart’s.

The founders of the world wide known restaurant “McDonalds” were two brothers, Richard and Maurice McDonald. The local restaurant was founded in Bernarido, California in 1940. The first person to open a franchise was Ray Kroc in 1955. McDonalds is over seen and ran by a great management team, with the CEO being Jim Skinner and the President as Don Thompson. The products that McDonalds sell consume of Burgers, Chicken, Fish, Pork, Beverages, Desserts, Franchises, Property, and Stock.

As the largest company in the restaurant and food services industry, McDonald’s Corporation has chosen to find its primary competitive advantage in the marketing and operational areas. As McDonald’s continues to grow and improve as a company, it is committed to its key success factors of cost efficiency, product development, marketing, and promotions. By focusing on these factors McDonald’s has derived its key accounting policies. The following is a list of significant accounting policies identified by the managers of McDonald’s. Consolidation Estimates in Financial Statements, Revenue Recognition, Advertising Costs, Stock-Based Compensation, Property and Equipment Goodwill, Long-Lived Assets, Franchise Revenues, and Employee Benefit Plan.

McDonalds Corporation's total current assets total to 4,176,500. The corporation’s assets include Cash and Cash Equivalents which are valued at 2,495,000; Net Receivables which are valued at 1,013,600; Inventory which is valued at 103,600; Other Current Assets which are valued at 564,300; and Short term Investments which the values were not provided. McDonalds Corporation's long term assets include: Long term Investments valued at 1,295,900; Property Plant and Equipment 21,1477,500; Goodwill valued at 2,521,500; Intangible Assets the values were not provided; and Accumulated Amortization values not provided, together the corporations long term assets and current assets are valued at 31,168,500.

McDonald's latest liabilities are as follows. Their current liabilities as of Sept, 2010 stand at $3,266,300. However their long term debt is at $11,357,100. Their deferred long term liability charges are $1,336,900. Other liabilities add up to $1,570,400. McDonald's liabilities as of Sept 2010 total up to $17,530,700.

After doing some research with my fellow group members, we came to the conclusion that McDonalds does not have owner’s equity. McDonalds is a corporation owned by shareholders across the world, there for they have stockholders equity. While researching I came across their most recent balance sheet, dated September 30, 2010. On the balance sheet, they were so kindly able to break down the stockholders equity into Misc stocks options warrants ($0), Redeemable Preferred Stock ($0), Preferred Stock ($0), Common Stock ($16,000), Retained Earnings ($32,568,900), Treasury Stock ($24,759,800), Capital Surplus ($5,108,300), and Other Stockholder Equity ($703,800) totaling in $13,637,800.

Personality Test

The personality test that I took on the Smart Assessment Tool website was very accurate. Some of the questions threw me for a loop, but for the most part I was able to answer the questions reasonably. Most of the answers described me to the end, and some were just no where near close to my personality.
The SAT personality test results showed how I was a caring and thoughtful person. Which it also showed that I was competitive and that I seek to express my self. I was impressed with the listing of ways that you should and should not communicate with me, they were very accurate and mostly true. For ex: it listed, respect his quiet demeanor, provide a friendly environment and allow him some space. Those are things that are within my personality and qualities that I poses. Over all the personality test was a good and helpful test, I was able to gain a few new things that I sometimes see within myself. But for the most part, it was just a review over old things.