Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analyze the various operating expenses as percentages of gross profit for Jamba Juice in the last five years. Should Jamba Juice try to increase the

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Analyze the various operating expenses as percentages of gross profit for Jamba Juice in the last five years. Should Jamba Juice try to increase the price of its products? What operating expenses are hurting Jamba Juice the most? Suggest possible turnaround actions the company should take.

2015-2016 (2.26) % (9.34) % 2014-2015 (25.85) % (35.41) % Total Revenue Cost of Sales Operating Income Current Assets Current Liabilities Total Liabilities Total Stockholder's Equity (28.16) % 5.87% (13.35) % (44.50) % (36.17)% (15.96) % (14.68) % (70.19) % answers should look like -0.05 or 1.33. Operating Income to Revenue Current Ratio Cash Ratio Debt to Equity 2016 1.92 % 0.54% 0.20 2015 6.34% 0.79% 0.35 2014 1.51 % 1.04% 0.27 (Dollars in thousands, except share and per share amounts) December 29, 2016 December 29, 2015 December 30, 2014 Revenue: Company stores $134,285 $198,737 19,311 Franchise and other revenue $137,025 24,651 161,676 23,739 158,024 218,048 Tolal revenue Costs and operating expenses (income): Cost of sales Labor 33,737 52,236 30,586 41,484 44,732 18,951 61,749 27,630 Occupancy 16,855 22,882 25,152 33,089 5,925 10,084 37,278 Store operating Depreciation and amortization General and administrative Gain on disposal of assets Store pre-opening Impairment of long-lived assets Store lease termination and closure Other operating, net 36,347 (2,785) 924 345 6,569 36,872 (21,609) 1,031 2,523 1,669 (2,957) 763 175 575 726 221,348 1,283 1,143 154,989 Total costs, operating expenses, and gain 1,795 151,422 10,254 Income (loss) from operations 3.035 (3,300) Other income (expense): Interest income 137 74 Interest expense Total other expense net 140 (235) 1951 (220) 183) (195) (121) (2,957) 763 Gain on disposal of assets Store pre-opening Impairment of long-lived assets Store lease termination and closure (2,785) 924 345 1,283 (21,609) 1,031 2,523 1,669 1,795 151,422 10,254 175 575 726 221,348 Other operating, net Total costs, operating expenses, and gain Income (loss) from operations Other income (expense): Interest income 1,143 154,989 3,035 (3,300) 140 137 74 Interest expense (235) (220) (195) Total other expense, net Income (loss) before income taxes (95) 2,940 (83) 10,171 (121) (3,421) (203) (701) 9,470 (168) (3,589) 2,737 Income tax expense Net income (loss) Redeemable preferred stock dividends and deemed dividends Less: Net income attributable to noncontrolling interest Net income (loss) attributable to Jamba, Inc. 48 $ 2,689 $ 9,418 $ (3,632) December 29, 2016 December 29, 2015 (Dollars in thousands, except share and per share amounts) December 30, 2014 Weighted average shares used in the computation of earnings (loss) per share attributable to Jamba, Inc.: Basic n/a n/a 15,787,806 16,228,033 17,197,904 17,197,904 Diluted Earnings (loss) per share attributable to Jamba, Inc. common stockholders: Basic $ $ n/a n/a $ $ 0.60 0.58 $ $ (0.21) (0.21) Tainted December 29, 2015 December 30 2011 $ 19,730 16,932 818 356 1,682 JAMBA, INC. CONSOLIDATED BALANCE SHEETS December 29, (Dollars in thousands, except share and per share amounts) 2016 Assets Current assets: Cash and cash equivalents $ 11,900 Receivables, net of allowances of $618 and $280 13,451 Inventories 750 Prepaid and refundable taxes 195 Prepaid rent 1,458 Assets held for sale Prepaid expenses and other current assets 3,865 Total current assets 31,619 Property, fixtures and equipment, net 20,400 Goodwill 1,260 Trademarks and other intangible assets, net 1,675 Notes receivable and other long-term assets $ 58,767 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 4,225 Accrued compensation and benefits 3,554 Workers' compensation and health insurance reserves 1,268 Accrued jambacard liability 24,184 Other current liabilities 15667 4,495 44,013 $ 17,750 16,977 2,300 474 504 22,845 8,105 68,955 17,988 945 2,360 2,241 $ 92,489 18,744 1,184 1,464 4,211 $ 69,616 3,813 Total assets $ $ 3,815 3,788 633 29,306 18 093 3,926 6,325 1,311 38,184 16 454 2015-2016 (2.26) % (9.34) % 2014-2015 (25.85) % (35.41) % Total Revenue Cost of Sales Operating Income Current Assets Current Liabilities Total Liabilities Total Stockholder's Equity (28.16) % 5.87% (13.35) % (44.50) % (36.17)% (15.96) % (14.68) % (70.19) % answers should look like -0.05 or 1.33. Operating Income to Revenue Current Ratio Cash Ratio Debt to Equity 2016 1.92 % 0.54% 0.20 2015 6.34% 0.79% 0.35 2014 1.51 % 1.04% 0.27 (Dollars in thousands, except share and per share amounts) December 29, 2016 December 29, 2015 December 30, 2014 Revenue: Company stores $134,285 $198,737 19,311 Franchise and other revenue $137,025 24,651 161,676 23,739 158,024 218,048 Tolal revenue Costs and operating expenses (income): Cost of sales Labor 33,737 52,236 30,586 41,484 44,732 18,951 61,749 27,630 Occupancy 16,855 22,882 25,152 33,089 5,925 10,084 37,278 Store operating Depreciation and amortization General and administrative Gain on disposal of assets Store pre-opening Impairment of long-lived assets Store lease termination and closure Other operating, net 36,347 (2,785) 924 345 6,569 36,872 (21,609) 1,031 2,523 1,669 (2,957) 763 175 575 726 221,348 1,283 1,143 154,989 Total costs, operating expenses, and gain 1,795 151,422 10,254 Income (loss) from operations 3.035 (3,300) Other income (expense): Interest income 137 74 Interest expense Total other expense net 140 (235) 1951 (220) 183) (195) (121) (2,957) 763 Gain on disposal of assets Store pre-opening Impairment of long-lived assets Store lease termination and closure (2,785) 924 345 1,283 (21,609) 1,031 2,523 1,669 1,795 151,422 10,254 175 575 726 221,348 Other operating, net Total costs, operating expenses, and gain Income (loss) from operations Other income (expense): Interest income 1,143 154,989 3,035 (3,300) 140 137 74 Interest expense (235) (220) (195) Total other expense, net Income (loss) before income taxes (95) 2,940 (83) 10,171 (121) (3,421) (203) (701) 9,470 (168) (3,589) 2,737 Income tax expense Net income (loss) Redeemable preferred stock dividends and deemed dividends Less: Net income attributable to noncontrolling interest Net income (loss) attributable to Jamba, Inc. 48 $ 2,689 $ 9,418 $ (3,632) December 29, 2016 December 29, 2015 (Dollars in thousands, except share and per share amounts) December 30, 2014 Weighted average shares used in the computation of earnings (loss) per share attributable to Jamba, Inc.: Basic n/a n/a 15,787,806 16,228,033 17,197,904 17,197,904 Diluted Earnings (loss) per share attributable to Jamba, Inc. common stockholders: Basic $ $ n/a n/a $ $ 0.60 0.58 $ $ (0.21) (0.21) Tainted December 29, 2015 December 30 2011 $ 19,730 16,932 818 356 1,682 JAMBA, INC. CONSOLIDATED BALANCE SHEETS December 29, (Dollars in thousands, except share and per share amounts) 2016 Assets Current assets: Cash and cash equivalents $ 11,900 Receivables, net of allowances of $618 and $280 13,451 Inventories 750 Prepaid and refundable taxes 195 Prepaid rent 1,458 Assets held for sale Prepaid expenses and other current assets 3,865 Total current assets 31,619 Property, fixtures and equipment, net 20,400 Goodwill 1,260 Trademarks and other intangible assets, net 1,675 Notes receivable and other long-term assets $ 58,767 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 4,225 Accrued compensation and benefits 3,554 Workers' compensation and health insurance reserves 1,268 Accrued jambacard liability 24,184 Other current liabilities 15667 4,495 44,013 $ 17,750 16,977 2,300 474 504 22,845 8,105 68,955 17,988 945 2,360 2,241 $ 92,489 18,744 1,184 1,464 4,211 $ 69,616 3,813 Total assets $ $ 3,815 3,788 633 29,306 18 093 3,926 6,325 1,311 38,184 16 454

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions