Refer to the YUM! Brands financial statements in Appendix A at the end of this book. Suppose…

Refer to the YUM! Brands financial statements in Appendix A at the end of this book. Suppose YUM’s year-end bank statement, dated December 30, 2006, has just arrived at company headquarters. Further assume the bank statement shows YUM’s cash balance at $324 million and that YUM’s Cash and Cash Equivalents account has a balance of $321 million on the books.

1. You must determine how much to report for cash and cash equivalents on the December 30, 2006, balance sheet. Suppose you uncover these reconciling items (all amounts are assumed and in millions):

a. Interest earned on bank balance, $1.

b. Outstanding checks, $8.

c. Bank collections of various items, $2.

d. Deposits in transit, $3.

e. Book error—YUM overstated cash by $5.

Prepare a bank reconciliation to show how YUM arrived at the correct amount of cash and cash equivalents to report on its December 30, 2006, balance sheet. Prove that your answer is the actual amount YUM reported. Journal entries are not required. (p. 226)

2. Study YUM Brands’ Management Responsibility for Financial Statements and indicate how that report links to specific items of internal control discussed in this chapter. (Challenge)

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!