Financial Reports of McDonalds - Assignment Example

This paper discusses McDonalds’ 2013 annual report with focus on the company’s operations, income statement, balance sheet, and cash flow, and ratio analysis. Accounting information, often summarized and communicated in annual reports, is important to different stakeholders to an organization. This paper reviews and reports on McDonalds’ annual report for the year ended 2013 with focus on the company’s operations and financial statements. The discussion identifies positive prospects in the annual report but offers reservations on the company’s long-term stability due to overreliance on external funding.

One of McDonalds’ operational activities in the accounting year ended 2013 was realignment of its subsidiaries, efforts that begun in the year 2005. The operations were geared towards two major goals, to realign the subsidiaries to external environments in the areas of operations and to realign the subsidiaries to the company’s global perspective. Theses aimed at attaining a desired corporate image by the company. The company also operates in two scopes, through its managed subsidiaries and though its franchises.

Its branches however obtain commodities and services from independent suppliers but quality assessment centers exist to ensure threshold standards in all of the company’s outlets. The company’s operations also include collaboration with suppliers to facilitate efficiencies through innovation, outstanding practices, and continuous improvements. The company offers a standard menu to its customers though a level of variation may exist to accommodate geographical diversity around its outlets.

It also offers seasonal products but majorly on promotions. Monitoring and evaluation of newly developed products also form a major aspect of the company’s operations. Research and development is another significant area of the company’s operations and research and development facilities exists in the United States, Europe, and