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Can you please help me determine the cost of goods total? It is not listed in th

ID: 2444738 • Letter: C

Question

Can you please help me determine the cost of goods total? It is not listed in the information off the Income statement data below from the Yum! Brands financial report? I know I can find the COGS by taking the begining inventory + purchases - ending inventory, but how do I determine what are the purchases?

http://www.yum.com/annualreport/pdf/2014yumAnnReport.pdf

Income Statement Data

Revenues Company sales $ 11,324 $ 11,184 $ 11,833 $ 10,893 $ 9,783

Franchise and license fees and income 1,955 1,900 1,800 1,733 1,560

Total 13,279 13,084 13,633 12,626 11,343

Closures and impairment income (expenses)(a) (535) (331) (37) (135) (47)

Refranchising gain (loss)(b) 33 100 78 (72) (63)

Operating Profit(c) 1,557 1,798 2,294 1,815 1,769

Interest expense, net(c) 130 247 149 156 175

Income before income taxes 1,427 1,551 2,145 1,659 1,594

Net Income – including noncontrolling interest 1,021 1,064 1,608 1,335 1,178

Net Income – YUM! Brands, Inc. 1,051 1,091 1,597 1,319 1,158

Basic earnings per common share 2.37 2.41 3.46 2.81 2.44

Diluted earnings per common share 2.32 2.36 3.38 2.74 2.38

Diluted earnings per common share before Special Items(c)

Explanation / Answer

sales- operating profit = cost of goods sold