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This post addresses 10-11 Eat at My Restaurant.

See attached document for case study data needed for the two questions below:

b) Comment on the data reviewed for each firm. Need to see at least 4 points on each company.

c) Do any of these firms appear to have a cash flow problem? Comment. You may not see any troubles that warrant alarm, but you still should choose a company that might have concerns.

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These are the points that I would consider for each company:

b) Comment on the data reviewed for each firm. Need to see at least 4 points on each company.

Yum Brands: (1) While there was a decrease in net cash from operating activities, there was an increase in net income. This indicates that non-operating activities were likely the cause of an increased net income, even though cash inflows dropped. (2) Operating cash flows to current maturities increased drastically, up from 5.39 in 2007 to 60.84 in 2008. This shows a substantial increase that would warrant further investigation in the company's balance sheet and the notes to the financial statements. (3) Operating cash flow per share increased, while operating cash flow to cash dividends ...

Solution Summary

This solution thoroughly discusses Case 10-11, Eat at My Restaurant. All case questions are addressed in detail.

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