Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chipotle Mexican Grill began with a single location in 1993 and now operates more than 2,450 restaurants. Adapted versions of the company's income statements (in

Chipotle Mexican Grill began with a single location in 1993 and now operates more than 2,450 restaurants. Adapted versions of the company's income statements (in $000s) are as follows:

2017 2016
Revenue $4,476,412 $3,904,384
Restaurant operating costs
Food, beverage, and packaging 1,535,428 1,365,580
Labor 1,205,992 1,105,001
Occupancy 327,132 293,636
Other operating costs 651,644 641,953
General and administrative expenses 296,388 276,240
Depreciation and amortization 163,348 146,368
Pre-opening costs 12,341 17,162
Loss on disposal of assets 13,345 23,877
Total operating expenses 4,205,618 3,869,817
Income from operations 270,794 34,567
Interest and other income (expense), net 4,949 4,172
Income before income taxes 275,743 38,739
Provision for income taxes 99,490 15,801
Net income $176,253 $22,938

Make a common-size income statement for each year. (Round answers to 1 decimal place, e.g. 50.1%.)

2017 2016
Revenue

%

%

Restaurant operating costs
Food, beverage, and packaging

%

%

Labor

%

%

Occupancy

%

%

Other operating costs

%

%

Pre-opening costs

%

%

Loss on disposal of assets

%

%

Total operating expenses

%

%

Income from operations

%

%

Interest and other income (expense), net

%

%

Income before income taxes

%

%

Provision for income taxes

%

%

Net income

%

%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

14th Edition

1260247821, 978-1260247824

More Books

Students also viewed these Accounting questions

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago