Question

Intermediate Accounting: RESEARCH PAPER You are going to choose a publicly traded company (Yum Brands). Publicly traded companies who have their shares listed on stock exchanges are required to file regular financial statements and disclosures with regulators, such as the securities and exchange commission (SEC) in the United States. Among the most widely read of these are a company's annual report, which tells investors and analysts how the company has performed over the previous fiscal year (FY), how its businesses look going forward and summarizing corporate financials for use in fundamental or ratio analysis through scrutinizing the balance sheet, income statement, and statement of cash flows. Here are topics to summarize in each paragraph: 1. Introduce to the FASB’s Conceptual Framework and FASB’s GAAP Codification, if any in their reports including their accounting principles or concepts. 2. Explain their annual Income Statement. Give a full summary of their earnings and operating expenses. Do they have Other Revenue and Gains or Other Expenses or Interest? Do they have discounting Operation or Extraordinary Items? Explain. You will find their information at the end of their Income Statement or Footnotes. What is their EPS? 3. Explain their annual Balance Sheet? Give a full summary of Assets, Liabilities, and Stockholder’s Equity. How many shares outstanding are stated? Do they have additional information at the bottom of the Balance Sheet? 4. Explain their Cash Flow Statement. Give a full summary of their cash flows. Are they using the indirect or direct method to calculate their results? 5. Conclusion 6. 2020: Was the company affected the Covid-19? Explain. No website restrictions, Report should be organized: introduction/problem, facts/findings, summary/conclusion. Thank you.

Answer 1

Solution:

1.The FAB's conceptual Frame work:

Helps the Board in setting sound financial accouting standards and helps members of the Board's constituency not only understand and apply those standards but also contribute significantly to their development.

Intended to help solve complex financial accounting or reporting problems by:

• Providing a set of common premises as a basis for discussion
• Providing precise terminology
• Helping to ask the right questions
• Limiting areas of judgement and discretion and excluding from consideration potential solutions that are in conflict with it
• Imposing an intellectual discipline on what historically was a subjective and ad hoc reasoning process

Does not establish new accouting standards or change existing GAAP,but is a foundation in establishing new standards o amending existing standards.

The FASB Accounting standards Condification is the source of authoritative generally accepted accounting principle(GAAP)recognized by the FASB to be applied to nongovernmental entities.The Condification is effective for inteim and annual periods ending after september 15,2009.

2.

Revenue

$143,015

$125,843

The revenue increased from 2019 to 2020

The gross margin also incresed from 2019 to 2020

Gross margin

96,937

82,933

The operational income incresed from 2019 to 2020

Operating income

52,959

42,959

3.The total value of assets is $301,311 million which is an increase from the value of assets in 2019 i.e. $286,556 million and the long term obligation share $110,697 which is less than the value in 2019 i.e.$114,806 and shareholders equity is $118,304 miillion

4.cash from opeations increased $8.5 billion to $60.7 billion for the year 2020.mainly due to an increase in cash from customers,offset in part by an increse in cash used to pay income taxes,suppliers, and employees.cash used in financing increased from $9.1 billion to $46.0 billion for the yera 2020,mainly due to a $3.4 billion cash premium on our debt exchange ,a $3.4 billion increse in common stock repurchases,a $1.5 billion increse in repayment of debt, and a $1.3 billion increase in dividends paid.cash used in investing decreased $3.6 billion to 12.2 billion for the year 2020,mainly due to a $6.4 billion increase in cash from net investment purchases,sales,and maturities, offset in part by a $1.5 billion increase in additions to property and equipment and $1.2 billion in other investments to facilitate the purchase of components.

5.The company is performing well with an increase in asset sand cash flows and lowering the liabilities etc.

6.As per the reports the company is not most effected by the covid-19