Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 1, Problem 5MAD
Compare Papa John’s and Yum! Brands
The following total liabilities and stockholders’ equity information (in millions) is provided for Papa John’s International, Inc. (PZZA) and Yum! Brands, Inc. (YUM) at the end of a recent year:
Yum! Brands is a much larger company than is Papa John’s; however, both companies compete internationally in the fast food business. Papa John’s is primarily in the carry-out and delivery pizza business, while Yum! Brands is in the quick-service restaurant business with its Pizza Hut, Taco Bell, and KFC brands.
- a. Compute the ratio of liabilities to stockholders’ equity for each company. Round to one decimal place.
- b. What conclusions regarding the margin of protection to creditors can you draw for these two companies?
- c. Which company is more risky to creditors?
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The following total liabilities and stockholders* equity information (in millions) is provided for Papa John's International, Inc. (PZZA) and Yum! Brands, Inc. (YUM) at the end of a recent year:
Yum! Brands is a much larger company than is Papa John's; however, both companies compete internationally in the fast food business. Papa John's is primarily in the carry-out and delivery pizza business, while Yum! Brands is in the quick-service restaurant business with its Pizza Hut, Taco Bell, and KFC brands.a. Compute the ratio of liabilities to stockholders' equity for each company. Round to one dec imal place.b. What conclusions regarding the margin of protection to creditors can you draw for these two companies?c. Which company is more risky to creditors?
AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a
variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun
and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative income statements and
balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual
financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates
have been modified slightly to disguise the company's identity.)
Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate
return relative to resources devoted to company operations.
AGF FOODS COMPANY
Years Ended December 31, 2024 and 2023
2024
Comparative Income…
AGF Foods Company is a large, primarily domestic, consumer foods company Involved in the manufacture, distribution, and sale of a
variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun
and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative Income statements and
balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual
financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates
have been modified slightly to disguise the company's Identity:)
Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate
return relative to resources devoted to company operations.
($ in millions)
AGF FOODS COMPANY
Years Ended December 31, 2024 and 2023
2024…
Chapter 1 Solutions
Financial And Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Prob. 1BECh. 1 - Accounting equation Be-The-One is a motivational...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Statement of stockholders equity Using the income...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Accounting equation The total assets and total...Ch. 1 - Prob. 5ECh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Inspirational Inc. is a...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items Based on the data presented...Ch. 1 - Statement of stockholders equity Financial...Ch. 1 - Income statement Imaging Services was organized on...Ch. 1 - Prob. 20ECh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty was organized...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - PR 1-2 B Financial statements The assets and...Ch. 1 - Financial statements 1. Net income: 10,900 Jose...Ch. 1 - Transactions; financial statements 2. Net income:...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1MADCh. 1 - Analyze The Home Depot for three years The Home...Ch. 1 - Analyze Lowes for three years Lowes Companies,...Ch. 1 - Compare The Home Depot and Lowes Using your...Ch. 1 - Compare Papa Johns and Yum! Brands The following...Ch. 1 - Prob. 1TIFCh. 1 - Prob. 2TIFCh. 1 - Prob. 4TIFCh. 1 - Prob. 5TIFCh. 1 - Prob. 6TIF
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