Ask Question
27 July, 04:43

Current assets $ 3,416.3 Interest expense $ 473.2 Total assets 30,224.9 Income taxes 1,936 Current liabilities 2,988.7 Net income 4,551.0 Total liabilities 16,191.0

Suppose the notes to McDonald's financial statements show that subsequent to 2014 the company will have future minimum lease payments under operating leases of $10,715.5 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $8,800 million. Recompute the debt to assets ratio after adjusting for this. (Round to 0 decimal places, e. g. 62%.)

+4
Answers (1)
  1. 27 July, 05:51
    0
    The Recomputed debt to assets ratio after adjusting for this is 64%

    Explanation:

    total assets before adjustments = $30,224.90

    total assets after adjustments = $30,224.90 + $8800

    = $39024.9

    total liabilities before adjustments = $16191

    total liabilities after adjustments = $16191 + $8800

    = $24991

    Debt to assets ratio after adjustments

    = total liabilities after adjustments/total assets after adjustments

    = $24991/$39024.9

    = 64.04%

    Therefore, The Recomputed debt to assets ratio after adjusting for this is 64%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Current assets $ 3,416.3 Interest expense $ 473.2 Total assets 30,224.9 Income taxes 1,936 Current liabilities 2,988.7 Net income 4,551.0 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers