iinni sien Be Help I S Exercise 10-16 (Part Level Submission) Suppose McDonald\'
ID: 2522916 • Letter: I
Question
iinni sien Be Help I S Exercise 10-16 (Part Level Submission) Suppose McDonald's 2017 financial statements contain the following selected data (n millions). $454.0 1,857.0 4,486.0 an) Current assets Total assets Current liabilities $3,455.0 Interest expense 29,105.0 Income taxes 3,018.0 Net income 17,609.0 (a1) Suppose the notes to McDonald's financial statements show that subsequent to 2017 the company will have future minimum lease payments under operating leases of $17,509.0 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately $9,003 million. Recompute the debt to assets ratio after adjusting for this. (Round answer to 0 decimal places, e.g. 62%.) Debt to assets ratio SAVE FOR LATER Attempts: O of 5 used 11-29 PExplanation / Answer
(b.1 ) Debt to total assets ratio, adjusted for off -balance-sheet lease obligations:
Debt to total assets ratio = Total liabilities / total assets
Total liablities after adjustment = 17609 + 9003 = $ 26612
Total assets after adjustment = 29105 + 9003 = $ 38108
Debt to total assets ratio = 26612 / 38108 = 69.83%
Rounded off = 70%
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