This and similar cases in succeeding chapters are based on the financial statements of YUM! Brands, Inc.

Question:

This and similar cases in succeeding chapters are based on the of YUM! Brands, Inc. As you work with YUM! Brands throughout this course, you will develop the ability to use the of actual companies.
Required
Refer to the YUM! Brands' in Appendix A at the end of the book.
1. Suppose you own stock in YUM. If you could pick 1 item on the company's income statement to increase year after year, what would it be? Why is this item so important? Did this item increase or decrease during 2006? Is this good news or bad news for the company?
2. What was YUM's largest expense each year? In your own words, explain the meaning of this item. Give specific examples of items that make up this expense. The chapter gives another title for this expense. What is it?
3. Use the of YUM in Appendix A to answer these questions: At the end of 2006, how much in total resources did YUM have to work with? How much did the company owe? How much of its assets did the company's stockholders actually own? Use these amounts to write YUM's accounting equation at December 30, 2006.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...