Final answer:
An investor interested in McDonald's Corporation's cash receipts and cash payments should examine the Statement of Cash Flows, which gives a detailed account of a company's cash transactions. The correct answer is option c.
Step-by-step explanation:
If an investor is interested in examining McDonald's Corporation's cash receipts and cash payments, they would want to view the Statement of Cash Flows. This financial statement provides a detailed breakdown of a company's cash inflows and outflows over a specific period. Unlike the balance sheet or income statement, the Statement of Cash Flows is solely concerned with the movement of cash, making it a critical tool for understanding how a company generates and uses cash.
The Statement of Cash Flows is divided into three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. It helps stakeholders determine the company's liquidity, solvency, and financial flexibility. By analyzing the cash flows from operating activities section, an investor can understand the cash generated from the company's core business operations. The investing activities reveal cash spent on or received from investments like property, plant, and equipment, while financing activities detail cash movements related to borrowing, repaying debt, and equity transactions such as dividend payouts.
Other options mentioned, like the Current Ratio or Financial Ratio, are metrics derived from the balance sheet and income statement and don't provide direct information about cash transactions. The Statement of Retained Earnings shows the portion of net income not distributed as dividends but retained for reinvestment; however, it does not offer insight into cash flow. Thus, the correct option is c. Statement of Cash Flows.