Finance Assignment

1. Go to the Internet and do some research on Yum! Brands, Inc., and its industry. Use one or more popular websites. Write a paragraph (about 100 words) that describes the industry, some current developments, and a projection for where the industry is headed.

2. Read Note 1 - (Description of Business) of Yum! Brands, Inc.'s annual report. What do you learn here and why is it important?

3. Name two of Yum! Brands, Inc. competitors. Why is this information important in evaluating Yum! Brands, Inc.'s financial performance?

4. Write Yum! Brands, Inc. accounting equation at December 31, 2012 (express all items in millions and round to the nearest $1 million). Does Yum! Brand, Inc.'s financial condition look strong or weak? How can you tell?

Total Assets ($9 mil) = Total Liabilities ($7 mil) + Total Shareholders' Equity ($2 mil)

5. What was the result of Yum! Brand, Inc.'s operations during 2012? Identify both the name and the dollar amount of the result of operations for 2012. Does an increase (or decrease) signal good news or bad news for the company and its stockholders?

6. Examine retained earnings in the Consolidated Statements of Shareholders' Equity. What caused retained earnings to increase during 2012?

7. Which statement reports cash and cash equivalents as part of Yum! Brands, Inc.'s financial position? Which statements tells why cash and cash equivalents increased (or decreased) during the year? Which activities Yum! Brands, Inc.'s cash and cash equivalents to change during 2012, and how much did each activity provide or use?