This morning we began our examination of the 2016 annual report for McDonald's. One of the segments of this large document described changes in business operations and adjustment made in response to changes in the marketplace. We discussed how McDonald's recognizes revenues and that there are over 13,400 McDonald's franchises in the US which are not necessarily owned by McDonald's corporation but the company receives a franchise fee along with merchandising revenues. We took a look at a recent article in the NY Times that described how New York was now requiring all restaurants to discontinue the use of frying or cooking oils that contain trans fats. McDonalds has yet to comply with this law. Homework is to continue working on worksheet featuring questions about the annual report.