Comparative Balances Common size Balance Sheet Dec, 27 Dec, 28 Change from 2016 to 2017 Dec, 27 Dec, 28 common size 2017 2016 Amount Percentage 2017 2016 2017 2016 Assets Assets current assets current assets Cash and cash equivalents $21,507 $11,607 $9,900 85.3% Cash and cash equivalents $21,507 $11,607 4.6% 2.2% Marketable securities $63,036 $62,040 $996 1.6% Marketable securities $63,036 $62,040 13.4% 11.59 Accounts receivable $5,641 $6,006 ($365 -6.1% Accounts receivable $5,641 $6,006 1.2% 1.1% Inventories $1,258 $806 $452 56.1% Inventories $1,258 $806 0.3% .16 Prepaid expenses and other current assets $1,757 $3,485 $1,728 49.6% Prepaid expenses and other current assets $1,757 $3,485 0.4% 0.6% Total current assets $93,199 $83,944 $9,255 11.0% Total current assets $93,199 $83,944 19.8% 15.6% Property and equipment, net $187,095 $136,264 $50,831 87.3% Property and equipment, net $187,095 $136,264 39.8% 25.36 Deferred income taxes, net $185,914 $313,207 ($127,293) 40.6% Deferred income taxes, net $185,914 $313,207 39.5% 58.29% Other assets $4,398 $4,779 ($381 8.0% Other assets $4,398 $4,779 0.9% 0.9% Total Assets $470,606 $538,194 ($67,588 12.6% Total Assets $470,606 $538,194 100.0% 100.0% Liabilities and Stockholder's Equity Liabilities and Stockholder's Equity Current liabilities Current liabilities Accounts payable $8,210 $6,921 $1,289 18.6% Accounts payable $8,210 $6,921 3.3% 2.1% Accrued expenses $11,649 $8,538 $3,111 86.4% Accrued expenses $11,649 $8,538 4.7% 2.5% Accrued wages and related liabilities $6,228 $6,084 $144 2.4% Accrued wages and related liabilities $6,228 $6,084 2.5% 1.8% Other current liabilities $7,937 $10,173 ($2,236 22.0% Other current liabilities $7,937 $10,173 3.29% 3.0% Total current liability $34,024 $31,716 $2,308 7.3% Total current liability $34,024 $31,716 13.8% 9.4% Deemed landlord financing $14,518 $2,007 $12,511 623.4% Deemed landlord financing $14,518 $2,007 5.9% 0.6% Deferred rent $36,596 $31,107 $5,489 17.6% Deferred rent $36,596 $31,107 14.9% 3.2% Liabilities under tax receivable agreement, net of current portion $158,436 $267,902 ($109,466) 40.9% Liabilities under tax receivable agreement, net of current portion $158,436 $267,902 64.49% 79.5% Other long-term liabilities $2,553 $4,109 ($1,556 37.9% Other long-term liabilities $2,553 $4,109 1.0% 1.2% Total liabilities $246,127 $336,841 ($90,714) 26.9% Total liabilities $246,127 $336,841 100.0% 100.0% commitments and contingencies commitments and contingencies Stockholder's equity Stockholder's equity Preferred stock, no par value: non-issued and outstanding Preferred stock, no par value: non-issued and outstanding Class A common stock $27 $25 $2 8.0% Class A common stock $27 $25 0.0% 0.0% Class B common stock $10 $11 ($1) 9.1% Class B common stock $10 $11 0.0% D.0% Additional paid-in capital $153,105 $135,448 $17,657 13.0% Additional paid-in capital $153,105 $135,448 32.5% 25.29% Retained earnings $16,399 $16,719 ($320) 1.9% Retained earnings $16,399 $16,719 3.5% 3.1% Accumulated other comprehensive loss ($49 ($15 $34 226.7% Accumulated other comprehensive loss ($49 ($15) 0.0% 0.0% Total stockholder's equity attributable to Shake shack Inc. $169,492 $152,188 $17,304 11.4% Total stockholder's equity attributable to Shake shack Inc. $169,492 $152,188 36.0% 28.3% Non-controlling interests $54,987 $49,165 $5,822 11.8% Non-controlling interests $54,987 $49,165 11.7% 9.19% Total equity $224,479 $201,353 $23,126 11.5% Total equity $224,479 $201,353 47.7% 37.4% Total Liabilities and Stockholder's Equity $470,606 $538,194 ($67,588) 12.6% Total Liabilities and Stockholder's Equity $470,606 $538,194 100.0% 100.0%Comparative Income Statement (Horizontal Analysis) Common Size Income Statement Dec, 27 Dec, 28 Change from 2016 to 2017 Dec, 27 Dec, 28 common size 2017 2016 Amount Percentage 2017 2016 2017 2016 Shack Sales 346,388 $259,350 $87,038 33.6% Shack Sales 5346,388 $259,350 96.5% 96.6% Licensing revenue $12,422 $9,125 $3,297 $6.1% Licensing revenue $12,422 $9,125 3.5% 3.49 Total revenue 358,810 $268,475 $90,335 33.6% Total revenue 358,810 $268,475 100.0% 100.0% Shack-level operating expenses Shack-level operating expenses food and paper costs 598,337 $73,752 $24,585 33.3% food and paper costs $98,337 $73,752 27.4% 27.5% labor and related expenses $91,740 $65,540 $26,200 10.0% labor and related expenses $91,740 $65,540 25.6% 24.4% other operating expenses $35,805 $24,946 $10,859 13.5% other operating expenses $35,805 $24,946 10.0% 9.3% occupancy and related expenses $28,197 $21,820 $6,377 29.2% occupancy and related expenses $28,197 $21,820 7.9% 8.1% general and administrative expenses $39,003 $30,556 $8,447 27.6% general and administrative expenses $39,003 $30,556 10.9% 11.4% depreciation expense $21,704 $14,502 $7,202 19.79% depreciation expense $21,704 $14,502 6.09 5.4% pre-opening costs $9,603 $9,520 $83 0.9% pre-opening costs $9,603 $9,520 2.7% 3.5% loss on disposal of property and equipment $608 $34 $574 1688.2% loss on disposal of property and equipment $608 $34 0.2% 0.0% total expenses $324,997 $240,670 $84,327 35.0% total expenses $324,997 $240,670 90.6% 89.6% operating income $33,813 $27,805 $6,008 21.6% operating income $33,813 $27,805 9.4% 10.4% other income, net $128,123 $1,065 $127,058 11930.3% other income, net $128,123 $1,065 35.7% 0.4% interest expense ($1,643 ($374 ($1,269 339.3% interest expense ($1,643) ($374) 0.5% 0.1% Income before income taxes $160,293 $28,496 $131,797 462.5% income before income taxes $160,293 528,496 44.7% 10.6% income tax expense $151,409 $6,350 $145,059 2284.4% ncome tax expense $151,409 $6,350 12.29% 2.49% Net income $8,884 $22,146 $13,262 59.9% Net income $8,884 $22,146 2.5% 3.2% Less: net income attributable to non-controlling interests $9,204 $9,700 $496 5.1% Less: net income attributable to non-controlling interests $9,204 $9,700 2.6% 3.6% Net Income attributable to shake shack inc. ($320) $12,446 ($12, 766) 102.6% Net Income attributable to shake shack inc. $320) $12,446 0.1% 1.6% Earnings per share of Class A common stock Earnings per share of Class A common stock Basic ($0.01) $0.54 ($1) 101.9% Basic $0.01) $0.54 D.0% 0.0% Diluted ($0.01) $0.53 ($1) 101.9% Diluted $0.01) $0.5 0.0% 0.0% Weighted-average shares of Class A common stock outstanding Weighted-average shares of Class A common stock outstanding Basic $25,876 $22,956 $2,920 12.79% Basic $25,876 $22,956 7.29% 3.69% Diluted $25,876 $23,449 $2,427 10.4% Diluted $25,876 $23,449 7.2% 3.7%Calculate the nancial ratios for 201? and 2016. You need to calculate the following ratios: 1. Current ratio 2. Operating cash flows to current liabilities ratio (Operating cash flows balance should be obtained from the Statement of lGash Flows) 3. Working capital turnover ratio 4. Solvency ratio 5. Debt-to-Equity ratio 6. Account receivables turnover ratio (If the account receivables or net receivables is not presented in the balance sheet. you can skip this ratio.) T". Average collection period (If the account receivable turnover ratio is calculated.) 8. Inventory turnover ratio (It' the inventories is not presented in the balance sheet. you can skip this ratio.) 9. Asset turnover ratio 10. PP&E (Fixed-asset) turnover ratio 11. Prot margin (94:) 12. Return on assets (%) 13. Return on equity (%)