Refer to the Yum Brands, Inc's consolidated financial statements in Appendix B at the end of this book. Focus on the year ended December 31,2012.

1. What is Yum! Brands Inc.'s main source of cash? Is this good news or bad news to its managers, stockholders, and creditors? What is Yum! Brands Inc.'s main use of cash? Is this good news or bad news? Discuss your reasoning.

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Consolidated Balance Sheets YUMI Brands, Inc and Subsidiaries December 29, 2012 and December 31, 2011 in mallions 012 ASSETS Current Assets Cash and cash equivalents Accounts and ถ0tes receivable, net s 776 $1,198 301 286 313 273 272 338 112 114 Prepaid expenses Deferred income taxes Advertising cooperative assets, restricted and other current assets 136 Total Current Assets 1,909 2,32 Property, plant and equipment, net ,250 4,042 ,034 681 Intangible assets, 690 167 300 475 549 9,01 $8,834 72 Restricted cash Other asscts Delerred income taxes 575 481 Tetal Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and other current labilities Income taxes payable Short-term borrowings Advartising coopcrative liabilitics $1,945 $1,874 142 320 114 2,188 2.450 97 10 136 Total Current Liabilities Long-term debt Other liabilities and deferred credits 932 2,997 1,579 1.47 6,699 6,918 Total Liabilities Redeemable noncontrolling interest 59 Shareholders Equity Common Stock, no par value, 750 shares authorized; 451 shares and 460 shares issued in 2012 and 2011, respectively Retained camings Accumulated other comprehensive income (loss) 18 286 2,052 (132)247 2.154 ,823 93 ,253 1,916 $9,011 58,834 Total Sharcholders' Equity-YUM!Brands, Inc Nonconirelling interests Total Shareholders' Equity Total Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity See accomparying Notes to Consolidated Financial Statements.