1. Baesd on income statement, balance sheet and cash flow statement of YUM! Brands, Inc. and other information, shown as followings: (48 scores)(1) Translate 3 cash flow statement items into Chinese: (6 scores)① Purchases of property, plant, and equipment② Payment of dividends and other distributions to stockholders③ Net Increase in cash and cash Equivalents(2)Calculate required financial indicators on Dec. 31, 2011: (20 scores)①Current ratio=②Quick ratio=③Debt-to-equity=④long-term debt-to equity=⑤ Times-interest-earned=⑥ G ross profit percentage=⑦Inventory turnover=⑻Days inventory held=⑨Receivable turnover=⑩ Days receivable=YUM! Brands, Inc. Statement of Income for the YearsEnded Dec. 31, 2011 and 2010(In millions) 2011 2010 RevenuesCompany sales ＄9,365 ＄9,225 Franchise and license fees 196 124 Total revenues 9,561 9,349 ExpensesCost of goods sold 2,249 2,284Payroll and employee benefits expense 2,442 2,471Occupancy and other operating expenses 2,403 2,315General and administrative expenses 1,187 1,158Other operating expenses (income) 18 (32)Total expenses 8,229 8,196Operating profit 1,262 1,153Interest expense 154 127Income before income taxes 1,108 1,026Income tax expense 284 264Net income＄ 824 ＄ 762YUM! Brands, Inc. Balance (Adapted) December 31, 2011,and 2010(In millions) 2011 2010ASSETSCurrent AssetsCa sh and cash equivalents……………………＄310 ＄150Short-term investments…………………………… 15 51Accounts and note receivable………………… 220 236Inventories……………………………………… 93 85Prepaid expenses and other current assets… 263 333Total Current Assets………………………… 901 855 Property, plant and equipment, at cost. 6,777 ＄6,186Less: Accumulated depreciation………….. (3,146) (2,830)Property, plant and equipment, net………… 3,631 3,356Intangible assets…………………………… 1,009 868Investments…………………………… .. 138 173Other assets………………………………… 674 545Total Assets…………………………… ＄6,353 ＄ 5,797 LIABILITIESCurrent LiabilitiesAccounts payable………………………… . ＄554 ＄473Income taxes payable…………………… 37 79Short-term borrowings (Notes payable)……… 22 211Sal aries and wages payable………………… 302 274Othe r current liabilities………………………… 604 586T otal Current Liabilities……………… 1,724 1,623Long-term debt…………………………… 2,045 1,649Other long-term liabilities……………………… 1,147 1,076Total Liabilities……………………………… 4,916 4,348SHAREHOLDERS’ EQUITYCommon stock…………………………… 23 20Paid-in capital 12 14Treasury stock (8) (6)Retained earnings…………………… 1,593 1,619Other equity………………………………. (183) (198)T otal Shareholders’ Equity………… 1,437 1,449Total Liabilities and Shareholders’ Equity ＄6,353 ＄5,797YUM! Brands, Inc.Statement of Cash Flows (Adapted)Years Ended December 31, 2011,and 2010(In millions) 2011 2010Cash Flows---Operating ActivitiesNet income ………………………………… . ＄ 824 ＄762Adjustments to reconcile net income to net cashProvided by operating activities …………… 478 476Net Cash Provided by Operating Activities 1,302 1,238Cash Flows---Investing ActivitiesPurchases of property, plant, and equipment….. (614) (609)Sales of property, plant, and equipment… 57 81Other ………………………………………. 81 183Net Cash Used in Investing Activities… (476) (345)Cash Flows---Financing ActivitiesIssuance of common stock……………… ——Issuance of short-term and long-term debt(Borrowing)……………………………… 540 160Repayments of short-term and long-term debt (288) (48)Payment of dividends and other distributionsto stockholders………………………… (850) (210)Other payments…………………… (67) (733)Net Cash Used in Financing Activities… (665) (831)Net Increase in cash and cash Equivalents……. 161 62Cash and Cash Equivalents---Beginning of Year 158 96Cash and Cash Equivalents---End of Year…… ＄ 319 ＄ 158(3) Supposed, the numbers of common stock are 110,134,256 and 110,026,782 shares for Dec. 31, 2011 and Dec. 31, 2010 respectively. The numbers of treasury stock on Dec. 31, 2011 and Dec. 31, 2010 are 200,000 and 195,000 shares respectively. The closing price of common stock is $15.25 per share and on Dec. 31, 2011, and $11.25 per share on Dec. 31, 2010, and there is no cash dividends distribution from Dec. 31, 2010 to Dec. 31, 2011. Calculate required financial indicators on Dec. 31, 2011: (10 scores)Market-to-book ratio=Accounting return on equity=Economic return on equity=(4) Point out the asset items classified into BvA1 and BvA3. (8 scores)BvA1 items：BvA3 items：(5) Do the balance sheet and income statement of YUM! Brands, Inc give a clear or cloudy picture of its activities? (4 scores)2. Make ordinary accounting entries and adjustment accounting entries and/or closing accounting entries at ending date of 2011, if any.(52 scores)1.Bob and Betsy decided to incorporate Wesell Inc. They became two owners of Wesell Inc. by each contributing $700,000 cash to the business on January 1, 2011. (2 scores)2.Bob and Betsy decided Wesell will borrow some money. On January 2, 2011, Wesell opted to issue bonds and received $00,000 cash, the bonds pay 6% interest annually (On January 2 of each year) and fall due on January 2, 2020. (4 scores)3.On January 3, 2011, Wesell bought computers and office equipment for $30,000. The expected useful life is 5 years, and expected net salvage value is $5 000. (4 scores)4.On January 4, 2011, Wesell purchased $3,000 of supplies on credit. An physical count for them found that the supplies was only $400 left. (4 scores)5. On January 2, 2011, Wesell paid $1,400 of the account payable. (2 scores)6. On January 1, 2011, Websell paid $66,000 cash to acquire the rights to various software programs, which expected last 4 years. (4 scores)7. On January 1, 2011, Websell paid $280,000 cash for the rights to copyrighted materials, being expected to be useful for the next 5 years. (4 scores)8. On February 5, 2011, Websell completed a consulting engagement for the client and billed the client for $3,200. (2 scores)9. On April 31, 2011, Websell paid developers for its web site $1,200,000 for programming and design service, which expected last 4 years. (4 scores)10. On April 1, 2011, Websell entered into the agreement to provide internet consulting services to a major corporation. The agreement called for Websell to receive immediately $75,000. (2 scores)11. On May 15, 2011, Websell completed the above consulting job. In addiction to earning the entire $45,000 it received in advance, Websell billed the client additional $55,000 for the job. (3 scores)12. During the six-month period to June 30, 2011, Websell paid wages of $47,000. (2 scores)13. Websell collected $41,000 of its accounts receivable during the six-month period to Dec 31, 2011. (2 scores)14. Received payment of $700 000 from Bone Inc. for the sale of goods on June 8. (2 scores)15. Paid advertisement expenses for cash $500. (4 scores)16. Prepare closing entries (10 scores)。