Required: Calculate the following ratios for Yum! Brands in 2019 and 2018. (Negative amounts should be indicated by a minu sign. Do not round intermediate calculations. Enter your answers in millions, rounded to the nearest whole number.) 1. Gross margin percent. 2. Return on assets (ROA). 3. Return on equity (ROE). 1. Gross Margin Percentage Numerator Denominator 2. Return on Assets Numerator Denominator 3. Return on Equity Numerator Denominator 2019 2019 2019 0 0 2018 2018 2018 = 0 0

Cornerstones of Financial Accounting
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Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 26BE
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Required:
Calculate the following ratios for Yum! Brands in 2019 and 2018. (Negative amounts should be indicated by a minus
sign. Do not round intermediate calculations. Enter your answers in millions, rounded to the nearest whole
number.)
1. Gross margin percent.
2. Return on assets (ROA).
3. Return on equity (ROE).
1. Gross Margin Percentage
Numerator
Denominator
2. Return on Assets
Numerator
Denominator
3. Return on Equity
Numerator
Denominator
2019
2019
2019
||
O
0
0
2018
2018
2018
11
II
0
0
O
Transcribed Image Text:Required: Calculate the following ratios for Yum! Brands in 2019 and 2018. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in millions, rounded to the nearest whole number.) 1. Gross margin percent. 2. Return on assets (ROA). 3. Return on equity (ROE). 1. Gross Margin Percentage Numerator Denominator 2. Return on Assets Numerator Denominator 3. Return on Equity Numerator Denominator 2019 2019 2019 || O 0 0 2018 2018 2018 11 II 0 0 O
Required information
[The following information applies to the questions displayed below.]
Consider the following balance sheet and income statement for Mmm Good Foods Incorporated
(the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including
some information from the cash flow statement: (amounts are millions)
Balance Sheet
Cash and short-term investments
Accounts receivable
Inventory
Other current assets
Long-lived assets
Total assets
Current liabilities
Total liabilities
Shareholders' equity
Total liabilities and equity
Income Statement
Sales
Cost of sales
Gross margin
Earnings before interest and taxes
Interest
Taxes
Net income
Share price
Earnings per share
Number of outstanding shares (millions)
Cash Flows
Cash flow from operations
Capital expenditures
Dividends
Mmm Good Foods Incorporated
2019
2018
$743
623
$ 443
597
161
3,704
$ 5,231
$ 1,541
13, 247
(8,016)
$ 5,231
$ 5,597
1,235
$ 4,362
$ 1,859
486
79
$ 1,294
$ 102
4.23
300
$ 1,315
196
511
167
2,923
$ 4,130
$ 1,301
12,056
(7,926)
$ 4,130
$ 5,688
1,634
$ 4,054
$ 2,291
452
297
$ 1,542
$92
4.80
306
$ 1,176
234
462
2017
$ 1,723
575
13
196
2,804
$5,311
$ 1,512
11,645
(6,334)
$5,311
$ 5,878
2,954
$ 2,924
$ 2,719
445
934
$ 1,340
$82
3.86
332
$ 1,030
318
416
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are millions) Balance Sheet Cash and short-term investments Accounts receivable Inventory Other current assets Long-lived assets Total assets Current liabilities Total liabilities Shareholders' equity Total liabilities and equity Income Statement Sales Cost of sales Gross margin Earnings before interest and taxes Interest Taxes Net income Share price Earnings per share Number of outstanding shares (millions) Cash Flows Cash flow from operations Capital expenditures Dividends Mmm Good Foods Incorporated 2019 2018 $743 623 $ 443 597 161 3,704 $ 5,231 $ 1,541 13, 247 (8,016) $ 5,231 $ 5,597 1,235 $ 4,362 $ 1,859 486 79 $ 1,294 $ 102 4.23 300 $ 1,315 196 511 167 2,923 $ 4,130 $ 1,301 12,056 (7,926) $ 4,130 $ 5,688 1,634 $ 4,054 $ 2,291 452 297 $ 1,542 $92 4.80 306 $ 1,176 234 462 2017 $ 1,723 575 13 196 2,804 $5,311 $ 1,512 11,645 (6,334) $5,311 $ 5,878 2,954 $ 2,924 $ 2,719 445 934 $ 1,340 $82 3.86 332 $ 1,030 318 416
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