Question
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).
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