Q1. YUM! Brands is the largest restaurant chain (larger than McDonald’s) when measured by (sales / # ___________) and operates more than 36,000 restaurants in more than 110 countries. Which is your favorite YUM! Brands restaurant?
(___________/___________/______________________/_____________________________/__________). Any response is correct.
Q2. Total Assets increased by ___________million since 12/29/2007, an increase of ___________, which is the result of (_________________________________/ issuing more common stock / increasing net income). This company has a major investment in (inventories / ___________/ goodwill), which (______ / is not) expected.
Q3. On 12/29/2007, the retained earnings account reports a (___________/ negative) amount, which is most likely the result of previously (selling assets / purchasing treasury stock / ___________).
Q4. This Company distributed dividends and other amounts to shareholders of $322 million in 2008, $362 million in 2009, and $412 million in 2010. Use this information to compute net income for:
Q5. For 12/26/2009 and 12/25/2010 complete the common-size statements by dividing each item on the classified balance sheet by the amount of total assets for the same year. Record your results in the area provided on the previous page. Common-size statements for 12/29/2007 and 12/27/2008 have already been completed. Comment on the trends in Total Liabilities and Total Stockholders’ Equity and what this indicates.
Q6. For 12/26/2009 and 12/25/2010 compute the current ratio and the debt ratio. Record your results in the area provided above. Ratios for 12/29/2007 and 12/27/2008 have already been computed. Comment on the results.
Q7. If you had $10,000, would you consider investing in this company? (Yes / No) Why?
Support your response with at least three good reasons.