McDonald's
Response to the following problem:
A brief history of the origin of the McDonald's Corporation is given at the start of this chapter. The following questions are adapted from information appearing in McDonald's 2005 annual report
1. In 2005, total sales at all McDonald's stores worldwide were $54.3 billion. There were 31,886 McDonald's stores operating in 2005. Estimate how many customers per day visit an average McDonald's store.
2. For the stores owned by the McDonald's Corporation (as opposed to those owned by franchisees), total sales in 2005 were $15.4 billion, and total cost of food and packaging was $5.207 billion. What journal entries would McDonald's make to record a $10 sale and to record the cost of food and packaging associated with the $10 sale?
3. McDonald's reported payment of cash dividends of $842.0 million in 2005. What journal entry was required?
4. McDonald's reported that the total income tax it owed for 2005 was $1,137.7 million. However, only $795.1 million in cash was paid for taxes during the year. What compound journal entry did McDonald's make to record its income tax expense for the year?