The following data are based on information in the 2017 annual report of YUM! Brands, Inc. YUM! Brands is the parent company of KFC, Pizza Hut, and Taco Bell. As of December 31, 2017, the parent company owned or franchised over 45,000 restaurants in 135 countries. Dollar amounts are in millions.

Required

a. Calculate the company’s net change in cash for 2016 and 2017.

b. Calculate the company’s ending cash balance for 2016 and 2017.

c. Notice that cash flows from financing activities were negative for each year. What could cause this to happen? Do you think this represents something positive or negative about the company? Explain your answer.

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2017 2016 $ 5,311 11,645 (6,334) 5,878 $ 5,453 11,068 (5,615) 6,356 Assets Liabilities Stockholders' equity Revenues 4,538 Expenses Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash balance at the beginning of 2016 was $365 4,713 1,030 1,472 (1,734) 1,248 (4) (778)