Working Capital Case Study:
Part 1: Obtain at least two years of financial information pertaining to the Mcdonald's Corporation from its most recent annual report (10-K). Then, use the information contained in the annual report to calculate the following:
1) Inventory period
2) Accounts receivables period
3) Accounts payable period
4) Cash conversion cycle
5) Operating cycle
Be sure to show your calculations in your analysis.
Part 2: Based on your calculations and other research, prepare a 700-1,050-word analysis of your selected company's working capital in which you address the following items:
1) Make recommendations for financial decisions that the organization could pursue based on its working capital situation.
2) Make recommendations for ways that the organization could improve its operating cycle.
3) Describe the possible financial impact of these recommendations on the organization's overall working capital situation.
4) Prepare a cash flow timeline for your company, similar to Figure 13.1 from chapter 13 of the text, Principles of Managerial Finance, Brief Fourth Edition, by Gitman.
Financial data found here:
https://www.secfilings.com/filings/63908/14780898/0001193125-08-037220/10-K/MCDONALDS-CORP-files-SEC-form-10-K-February-25-2008.aspx?dl=PDF&rfr=1