Review of Financial Statements Essay

Financial t distributivelyings atomic issue 18 essential score tools which include relief sheets, exchange f conf utilise masterys, and income tales that provide education on a confederations past and present monetary history. tuition on financial statements can be spendd by any g all overnment issue of world and private entities to determine if an brasss financial status is wellnessy. Burger exponent and McDonalds atomic number 18 devil organizations that employment financial statements in conducting business.Further, this paper volition discuss the financial statements of to severally one company, the fuddleds which take stock each companies financial statements, and define accounting concepts, terminologies, and transactions used in the financial statements. Additional information will provided regarding when McDonalds and Burger ability were launch and what product and go they provide to the customary.Overview of OrganizationsMcDonalds starting lin e opened its doors in 1940 introducing the concept of the speedee military service system religious protracting cut hot up, hamburgers, and shakes to satisfy the hungry guest quickly at a low price. Over the coterminous 65 positivistic familys the McDonalds batting order has changed from just french fries and hamburgers to salads, wraps, chicken nuggets and many more items which cater to the ever changing tastes of consumers. McDonalds has been criticized everywhere the old age as cosmos a major contributor eminent corpulency assesss, in part due to the speedee service concept. These criticism father caused McDonalds to conceive menu items and helped the company to enact legion(predicate) changes to the menu which this instant offers nutritional guides for each menu item and fitter choices such as salads, fruit, and milk.McDonalds has changed the petroleum used to fry foods to make the fries healthier and includes a choice of meal sizes and roughly recently s tarted a new confines of coffee drinks, which offers the desired Starbucks taste for a fraction of the cost. The fast food drawing string currently has 31,000 eating places worldwide and operates in 119 countries and serves rough 47 cardinal guests daily. McDonalds is also extremely associated with the Ronald McDonald House Charities (RMHC) that has donated money and services to families and communities for everywhere 35 years to approximately 37 one thousand one million million million children and families. (McDonalds, 2009). The McDonald smoke pays for most ofRMHCs global administration cost so that all told donations go directly to the conjunction and families. The charity is in such high demand that RMHC plans to expand their programs by 37% by 2010 to better help those in need.Burger king started in 1953 first-year cognize as Insta Burger fairy offering hamburgers to consumers that was cooked on a gloomy cooker called an Insta-Broiler oven the concept be to be successful. In 1954 the name changed to Burger magnate, the broiler oven first used was replaced with the flame broiler and soon became customary for offering their flame broiled hamburgers and what is now known as the walloper burger. (Burger world-beater, 2009). The next 60 plus years for Burger pansy began suffering the same criticisms as McDonalds.It seemed all fast food set up were being blamed for the increased obesity rate in the U.S. Burger pouf followed suit and began make changes to their menus adding chicken, salads, fruit, food nutritional guides, smaller sizes, choice of drinks such as tea, milk, and changing the oil used to fry French fries as well as excess changes. Burger tycoon Corporation is associated with a some charity organizations such as expect It Your Way which works to alleviate hunger, disease, and promotes participation education through scholarship programs the McLamore backside provides scholarships and is associated with several charit ies forWhen Organizations Were EstablishedBurger King was founded in 1954 in Miami, Florida by James McLamore and David Edgerton. McLamore and Edgerton, two of whom had extensive experience in the eating place business before starting their crossroads venture, believed in the simple concept of providing the customer with reasonably priced quality food, served quickly in attractive, clean surroundings. (New York romp Source, 2009), thus, the invention of the Whopper which was an instant success. at present Burger is found in all 50 states and 74 countries and territories passim the world with more than 11,700 eaterys. In 1967 the Pillsbury company based in Minneapolis, Minnesota purchased the company and its employees and the company went public in may 2006 at $17 a allocate. straightaway the company remains majority-owned by an lawfulness group comprised of Texas Pacific Group, Bain Capital Partners and the Goldman Sachs Funds. (New York Job Source, 2009).McDonalds was fo unded by two brothers, stopcock and Mac McDonald of SanBernardino, California. Ray Kroc, a shake machine distributor happened on the brothers restaurant as he was curious to split why such a small establishment would need 10 handshake machines. Kroc was impressed by the speed with which these two brothers were able to provide service in their busy hamburger stand and he asked the brothers for a briefing on their McDonalds Speedee System and after the briefing he requested and secured the rights to duplicate the system throughout the United States. Ray Kroc opened his first outlet in Chicago in 1955, 50 years later the number of McDonalds locations had expanded to over 31,500. (Albrecht, Stice, Stice, & Swain, 2008, pg. 76). Today McDonalds averages over 100 million dollars a day and is determined in 121 countries around the world. Both companies had meager beginnings and have grown into fast food superstars. score Organizations Providing AuditsBoth McDonalds and Burger King off er burgers, fries, and creamy shakes. However, the contrarietys between McDonalds and Burger King are far more than prospering arches and golden crowns. McDonalds has both and essential and external visit committees. The natural audit committee is composed of five Directors, each of whom meets the independence and other requirements of the New York memory Exchange (Santona, 2009). The committee abides by a charter which states all its responsibilities and is reviewed one-yearly. Ernst & Young LLP (Ernst & Young), the participations independent auditors, is responsible for acting an audit of the Companys yearly consolidated financial statements in abidance with generally accepted accounting principles (GAAP) and for outcome a cut through on those statements (Santona, 2009).The Burger King Corporation also has both inside and external audit committees. The internal committees bring about quarterly internal audits that are published for investors, but these audits are i ndicated as unaudited by an external entity. KPMG LLP is the external organization the Burger King Corporation uses for its external audits.Financial Statements employ and TerminologyAs a in public traded company within the United States Burger King Corporation (BKC) has taken all the inevitable steps required to abide by the regulations set forth the Sarbanes-Oxley Actof 2002. The annual report for FY2008 includes information such as business information, risk factors, physical assets, jural proceedings, stockholder matters, and finally a countrywide financial statement. (Burger King Corp, 2009). This section of the annual report begins with management reports on internal controls which are in place regarding financial reporting which explains in detail the concord of both the CEO and CFO and their indebtedness to take full responsibility for the satisfy of the annual report. The report of the independent registered public accounting firm (KPMG) is and additional statement of responsibility from the independent accounting firm which states the firm has reviewed the information. Paged within the reportcontain the symmetricalness sheet, statement of income, statement of stockholders equity, and statement of cash flows for FY2008 compared to 2007, 2006, and 2005. season BKCs annual report was presented in a standard no-frills format, McDonalds Corporations 2008 annual report include graphics and photos as the device driver of the information. Along with the financial statements, McDonalds annual report focused on highlights from the menu to the money along with letters of agreeable from the Chairman, Andy McKenna and CEO, Jim Skinner. (McDonalds Corporation, 2009). The financial reporting still included the managements report on internal controls, the report of independent registered public accounting firm (Ernst & Young, LLP), the balance sheet, statement of income, statement of stockholders equity, and the statement of cash flows. In both instances a dedicated causa was made to satisfy the requirements regulated by the United States Securities and Exchange Commission.Basic write up ConceptsIn 2008, McDonalds financial report shows annual match revenue at 23,522.4 million dollars compared to Burger Kings 2,455.0 million dollars a residue of 21,067.4 million dollars McDonalds clearly having get more revenue (MSN Money, 2009). However, prior to 2003, the difference between McDonalds cyberspaces and Burger Kings were even greater. From 2001 through 2003 Burger King was losing money, but has made a quieten annual raw profit since. (CNN Money, 2006). transactionsIn 2008, Burger Kings annual profit was 1,452.0 million dollars and in 2007 the profit was 1,317.0 million dollars, a growth of 135 million dollars. McDonalds has also encountered gross profit over the past two years, however, at a much greater scale. In 2008 the gross profit preserve was 8,639.2 million dollars and in 2007 a gross profit was recorded of 7,905.2, an increase in profit of 734 million dollars.Accounts impact by Transactions epoch the two fast food restaurant chains are no where rough comparable in revenue, both chains are increasing revenue year after year. Since 2006, when Burger King became a publicly traded company like McDonalds, they both worked to note a profitable growth for share holders which has increased the amount of profit each year (MSN Money, 2009). Both companies have cash assets as well as get and property, rental fees, food, supplies, salary responsibilities, and advertising. Financial Statements Affected by TransactionsEach of the transactions listed for Burger King and McDonalds are provided in detail on a number of the financial statements. Specifically, the profit can be followed on the balance sheet, the statement of income, and the statement of cash flows located in each annual report. In addition these figures are compared to the previous years numbers on each of these statements. closedownMcDonalds a nd Burger King have been in business for decades and each company has established its respective company in the black Maria of the American people and consumers across the public when they expanded into global market. Both companies use reputable accounting firms and the same types of financial statements in order to assess the health of their financial status. This paper has shown how important judgment the concepts, terms, and transactions listed on financial statements are in order to better gage how a company is faring financially on a year to year basis.ReferencesAlbrecht, W.S., Stice, E.K., Stice, J.D. & Swain, M.R. (2008). score Concepts and applications, (10 ed). Cengage Learning Center, Mason, Ohio.Burger King Corp. (2009). Company Info. Retrieved June 20, 2009 http//www.bk.com/Companyinfo/corporation/fact.aspxCNN Money. (2006). The King Meets his Public. Retrieved June 18, 2009, from http//money.cnn.com/magazines/fortune/fortune_archive/2006/03/06/8370602/index.htmMcD onalds. (2009). Our company. Retrieved June 18, 2009 from http//www.aboutmcdonalds.Com/mcd/our_company.htmlMcDonalds Corporation (2009). 2008 annual report. Retrieved June 18, 2009, from http//www1.mcdonalds.com/annualreport/index.htmlMSN Money. (2009). McDonalds Corporation Financial Statement. Retrieved June 18, 2009,from http//moneycentral.msn.com/investor/invsub/results/statement.aspx? symbol=MCD&1stStatement=Income&stmntView=AnnMSN Money. (2009). Burger King Holdings Inc. Financial Statement Retrieved June 18, 2009, from http//moneycentral.msn.com/investor/invsub/results/statement.aspx? type =BKC&1stStatement=Income&stmntView=AnnNew York Job Source. (2009). Burger King Worlds second largest food chain. Retrieved June 19, 2009 from http//www.nyjobsource.com/burgerking.htmlSantona, G. (2009). McDonalds 2009 one-year Shareholders Meeting and Proxy Statement. Retrieved June 20, 2009, from http//www.aboutmcdonalds.com/etc/medialib/aboutMcDonaldsinvestor_relations.Par.58.686.File.tm p/2009%20Annual%Shareholders%20Meeting%20Proxy%20Statement.pdf