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.