Financial statements are essential accounting tools which include balance sheets, cash flow statements, and income statements that provide information on a company's past and present financial history. Information on financial statements can be used by any number of public and private entities to determine if an organization's financial status is healthy. Burger King and McDonald's are two organizations that use financial statements in conducting business.
Further, this paper will discuss the financial statements of each company, the firms which audit each companies financial statements, and define accounting concepts, terminologies, and transactions used in the financial statements. Additional information will provided regarding when McDonald's and Burger King were established and what product and services they provide to the public.
Overview of OrganizationsMcDonalds first opened its doors in 1940 introducing the concept of the "speedee service system" offering french fries, hamburgers, and shakes to satisfy the hungry customer quickly at a low price. Over the next 65 plus years the McDonalds menu 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 over the years as being a major contributor high obesity rates, in part due to the speedee service concept. These criticism have caused McDonald's to rethink menu items and helped the company to enact numerous changes to the menu which now offers nutritional guides for each menu item and healthier choices such as salads, fruit, and milk. McDonald's has changed the oil used to fry foods to make the fries healthier and includes a choice of meal sizes and most recently started a new line of coffee drinks, which offers the desired Starbucks taste for a fraction of the cost. "The fast food chain currently has 31,000 restaurants worldwide and operates in 119 countries and serves approximately 47 million customers daily. McDonalds is also highly associated with the Ronald McDonald House Charities (RMHC) that has donated money and services to families and communities for over 35 years to approximately 37 million children and families." (McDonalds, 2009). The McDonald Corporation pays for most of RMHC's global administration cost so that all donations go directly to the community 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 known as Insta Burger King offering hamburgers to consumers that was cooked on a small cooker called an Insta-Broiler oven; the concept proved to be successful. "In 1954 the name changed to Burger King, the broiler oven first used was replaced with the flame broiler and soon became popular for offering their flame broiled hamburgers and what is now known as the Whopper burger." (Burger King, 2009). The next 60 plus years for Burger King began suffering the same criticisms as McDonalds. It seemed all fast food chains were being blamed for the increased obesity rate in the U.S. Burger King followed suit and began making 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 additional changes. Burger King Corporation is associated with a few charity organizations such as "Have It Your Way" which works to alleviate hunger, disease, and promotes community education through scholarship programs; the McLamore Foundation provides scholarships and is associated with several charities forWhen Organizations Were EstablishedBurger King was founded in 1954 in Miami, Florida by James McLamore and David Edgerton. "McLamore and Edgerton, both of whom had extensive experience in the restaurant business before starting their joint venture, believed in the simple concept of providing the...
References: lbrecht, W.S., Stice, E.K., Stice, J.D. & Swain, M.R. (2008). Accounting: Concepts and applications, (10 ed). Cengage Learning Center, Mason, Ohio.
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Com/mcd/our_company.htmlMcDonald 's 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?Symbol =BKC&1stStatement=Income&stmntView=AnnNew York Job Source. (2009). Burger King: World 's second largest food chain. Retrieved June 19, 2009 from http://www.nyjobsource.com/burgerking.htmlSantona, G. (2009). McDonald 's: 2009 Annual Shareholders ' Meeting and Proxy Statement. Retrieved June 20, 2009, from http://www.aboutmcdonalds.com/etc/medialib/aboutMcDonaldsinvestor_relations.Par.58.686.File.tmp/2009%20Annual%Shareholders%20Meeting%20Proxy%20Statement.pdf
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