Define relationship between retained earnings and net income

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Reference no: EM131520012

Question: Obtain a copy of the annual report of McDonald's Corporation for the most recent year. You can find the annual report at the company's website ( www. mcdonalds.com) in the investor information section or at the Securities and Exchange Commission's website ( www.sec.gov) using EDGAR (Electronic Data Gathering, Analysis, and Retrieval). Form 10-K, which includes the annual report, is required to be filed on EDGAR. Search or scroll within the annual report to find the financial statements.

Required: Determine the following from the company's financial statements:

1. Do the company's revenues exceed expenses? What is the amount of net income?

2. Did net income increase in the most recent year compared to the previous year?

3. Which assets are listed as current assets? Why are other assets not listed as current assets?

4. Which liabilities are listed as current liabilities? Why are other liabilities not listed as current liabilities?

5. By how much did retained earnings increase/decrease in the most recent year compared to the previous year?

6. What is the amount of dividends paid to common stockholders? This information can be found in the statement of shareholders' equity or the statement of cash flows.

7. Explain the relationship between the change in retained earnings, net income, and dividends.

Reference no: EM131520012

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