Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 2, Problem 2.2ADM
Chipotle: Horizontal analysis
Chipotle Mexican Grill, Inc. is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s balance sheets for the end of two recent years are as follows:
| Chipotle Mexican Grill, Inc Balance Sheets December 31 (in thousands) | |||
| Year 2 | Year 1 | ||
| Assets Current assets |
|||
| Cash | $ 419,465 | $ 323,203 | |
| Accounts receivable, net— | 34,839 | 24,016 | |
| Inventory | 15,332 | 13,044 | |
| Other current assets | 70,251 | 51,073 | |
| Investments | 338,592 | 254,971 | |
| Total current assets | $ 878,479 | $ 666307 | |
| Property, plant, and equipment | 1,106,984 | 963,238 | |
| Long-term Investments | 496,106 | 313,863 | |
| Other assets | 64,716 | 65372 | |
| Total assets | $2,546,285 | $2,009,280 | |
| Liabilities and Stockholders’ Equity Current liabilities |
|||
| Accounts payable | $ 69,613 | $ 59,022 | |
| Other current liabilities | 176,097 | 140,206 | |
| Total current liabilities | $ 245,710 | $ 199,228 | |
| Long-term liabilities | 288,206 | 271,764 | |
| Total liabilities | $ 533,916 | $ 470,992 | |
| Stockholders' Equity | |||
| Common stock | $ 354 | $ 352 | |
| Additional paid-in capital | 1,038,932 | 919,840 | |
| 1,722,271 | 1,276,897 | ||
| (748,759) | (660,421) | ||
| Other adjustments | (429) | 1,620 | |
| Total stockholders’ equity | $2,012,369 | $1,538,288 | |
| Total liabilities and stockholders’ equity | $2,546,285 | $2,009,280 | |
- A. Prepare a horizontal analysis of the two balance sheets. (Round percentages to one decimal place.)
- B. Interpret the horizontal analysis with respect to the change in total assets, total liabilities, and total stockholders’ equity. (Treasury stock will be discussed in a later chapter and may be omitted from your analysis.)
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You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:
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You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:
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You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:
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Chapter 2 Solutions
Corporate Financial Accounting
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Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Prob. 2.2BECh. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Prob. 2.1EXCh. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Zenith Consulting Co. has the...Ch. 2 - Journalizing and posting On October 3, 2018, Regal...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Warwick Co....Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Napa Tours Co. is a...Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Total of Credit column: 525,000 Error in triad...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Prob. 2.22EXCh. 2 - Entries into T accounts and trial balance Marjorie...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance On November 1,...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Lexington Group has...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Continuing Company AnalysisAmazon: Horizontal...Ch. 2 - Chipotle: Horizontal analysis Chipotle Mexican...Ch. 2 - Prob. 2.3ADMCh. 2 - Prob. 2.4ADMCh. 2 - Prob. 2.1TIF
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