My Essay

Accounting

The two companies chosen for the sake of analysis are Burger King and Wendy's respectively. The balance sheets of these two companies in the same time period are listed underneath.

Part 1:: Comparison of Balance Sheets

The detained balance sheets of the two companies are provided underneath and both are considered in the same time period (2012. From a glimpse of the balance sheet it becomes evident that one of the three assets hold by the two companies are (a) Cash Only, (b) Short term investments and (c) Gross Account receivables. Total amount of current assets for Wendy 1.65b B whereas the same for the Burger King is 1.09 B so the current asset value of the Wendy is much higher as compared to that of the Burger King Company.

The three plant assets hold by Wendy are (a) Net Property, Plant & Equipment, (b) Property, Plant & Equipment – Gross and (c) Other Property, Plant & Equipment and the same applies for Burger king as well. The values of these plant assets as per the balance sheets for the

Wendy’s are respectively 1.25 B, 1.65 B and 342.42 M and for the Burger King the values are 885.2 M, 1.09 B and 51.1 M.

On each of the balance sheets of the two companies we can see the good will listed in the form of Net good will.

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Balance Sheet of Burger King for 2012

Balance Sheet of Wendy’s for 2012

The three liabilities hold by the two companies is respectivelty (a) Accounts payable, (b) Total current liabilities and (c) other liabilities. On comparison we find that the total liability hold by Burger king (397.8M) is much higher as compared to the value of Wendy’s (286.86 M). The total amounts of liabilities of both companies are respectively 2.32 B and 4.39 B where the last value is that of Wendy’s.

Wendy’s liability for 2012

Liabilities of Burger King for 2012

Provided below are the equity values for the two companies and from a critical review we can find out the various values of equities associated with these...