Though the McDonald’s menu of hamburgers, cheeseburgers, the Big Mac®, Quarter Pounder®, the Filet-O-Fish®, and Chicken McNuggets® is easily recognized, McDonald’s financial statements may not be as...

Though the McDonald’s menu of hamburgers, cheeseburgers, the Big Mac®, Quarter Pounder®, the Filet-O-Fish®, and Chicken McNuggets® is easily recognized, McDonald’s financial statements may not be as familiar. The following items were adapted from a recent annual report of McDonald’s Corporation: 1. Accounts payable 11. Net income 2. Accrued interest payable 12. Net increase in cash 3. Capital stock outstanding 13. Notes payable 4. Cash 14. Notes receivable 5. Cash provided by operations 15. Occupancy and rent expense 6. Food and packaging costs used in 16. Payroll expense operations 17. Prepaid expenses not yet used in 7. Income tax expense operations 8. Interest expense 18. Property and equipment 9. Inventories 19. Retained earnings 10. Long-term debt payable 20. Sales Identify the financial statement on which each of the preceding items would appear. An item may appear on more than one statement. Use the following notations: IS Income statement RE Retained earnings statement BS Balance sheet SCF Statement of cash flows