Use YUM! Brands, Inc.'s, statement of cash flows along with the company's other financial statements, all in

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Use YUM! Brands, Inc.'s, statement of cash flows along with the company's other financial statements, all in Appendix A at the end of the book, to answer the following questions.
Required
1. By which method does YUM report cash flows from operating activities? How can you tell?
2. Suppose YUM reported net cash flows from operating activities by using the direct method. Compute these amounts for the year ended December 30, 2006 (ignore the
Statement of cash flows, and use only YUM's income statement and balance sheet).
a. Collections from customers, franchises, and licenses.
b. Payments for inventory. YUM calls its Cost of Goods Sold "Food and Paper Expense." Note 11 gives the Accounts Payable balance.
3. Prepare a T-account for Property, Plant, and Equipment, Net and show all activity in this account for 2006. Use the depreciation amount in note 9 and assume that YUM
(a) Sold property, plant, and equipment with book value of $53 million and
(b) Acquired $180 million of property, plant, and equipment as part of YUM's acquisitions of other companies.
4. Evaluate 2006 in terms of net income, total assets, stockholders' equity, cash flows from operating activities, and overall results. Be specific.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

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