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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

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)

Mmm Good Foods Incorporated
Balance Sheet 2019 2018 2017
Cash and short-term investments $ 743 $ 443 $ 1,723
Accounts receivable 623 597 575
Inventory 13
Other current assets 161 167 196
Long-lived assets 3,704 2,923 2,804
Total assets $ 5,231 $ 4,130 $ 5,311
Current liabilities $ 1,541 $ 1,301 $ 1,512
Total liabilities 13,247 12,056 11,645
Shareholders equity (8,016) (7,926) (6,334)
Total liabilities and equity $ 5,231 $ 4,130 $ 5,311
Income Statement
Sales $ 5,597 $ 5,688 $ 5,878
Cost of sales 1,235 1,634 2,954
Gross margin $ 4,362 $ 4,054 $ 2,924
Earnings before interest and taxes $ 1,859 $ 2,291 $ 2,719
Interest 486 452 445
Taxes 79 297 934
Net income $ 1,294 $ 1,542 $ 1,340
Share price $ 102 $ 92 $ 82
Earnings per share 4.23 4.80 3.86
Number of outstanding shares (millions) 300 306 332
Cash Flows
Cash flow from operations $ 1,315 $ 1,176 $ 1,030
Capital expenditures 196 234 318
Dividends 511 462 416

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 2019 2018
Numerator = = =
Denominator
2. Return on Assets 2019 2018
Numerator = = =
Denominator
3. Return on Equity 2019 2018
Numerator = = =
Denominator

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