Kaitlyn Whitehead
Bus 681-40
April 29, 2018
I have chosen to look at the 2017 10-K reports of both McDonald’s and Wendy’s to
determine which would be the best company to potentially invest in. More specifically, within
the 10-K reports, I utilized both the income statements and balance sheets of each company, as
well as applicable footnotes of the financials to perform the following calculations and analysis’.
By calculating the current ratio, the cash ratio, the acid-test ratio, and working capital for both
companies, we can determine that both McDonald’s and Wendy’s are in a great financial
situation with regards to their liquidity. The current ratio shows that each company is utilizing
their assets effectively, as each company is not too liquid. Both companies also have a cash ratio
below 1.0, which shows that each company is utilizing their money well, indicating that both
