Key Financial Relationships

Basic Accounting Equation

The basic accounting equation upon which the final accounts are prepare encompasses the following

Assets minus Liabilities Ownership Interest

The Balance Sheet is the key financial report that portrays the accounting equation , which will be utilized to compute the accounting equation for the companies at hand

Accounting Equation in McDonald 's Annual Report (2007

Assets : Property , plant and equipment 20 ,984 .70 million

Current Assets 3 ,581 .90 million

Other Assets 4 ,825 .10 million

br Liabilities : Non-Current Liabilities (note 1 9 ,613 .40 million p

Current Liabilities 4 ,498 .50 million

br Ownership Interest 15 ,279 .80 million

Note : ownership interest is represented by the Balance Sheet

Note 1 - Computation of Non-Current Liabilities

Long-Term Debt 7 ,310 .0 million

Other Long-Term Liabilities 1 ,342 .5 million

Deferred Taxation 960 .9 million

Non-Current Liabilities 9 ,613 .4 million

Accounting Equation in Triarc Companies Incorporation (2007

Assets : Non-Current Assets 1 ,284 ,313 ,000

Current Assets 170 ,254 ,000

br Liabilities : Non-Current Liabilities (see note 2 798 ,530 ,000

Current Liabilities 207 ,163 ,000

br Ownership Interest 448 ,874 ,000

Note : ownership interest is represented by the Balance Sheet

Note 2 - Computation of Non-Current Liabilities

Long-Term Debt 711 ,531 ,000

Deferred Income 10 ,861 ,000

Minority interest in consolidated subsidiaries 958 ,000

Other Liabilities 75 ,180 ,000

Non-Current Liabilities 798 ,530 ,000...