Famous Daves is labeled BBQ HOLDINGS INC. AND SUBSIDIARIES

1. Describe in two complete sentences what the receivable turnover ratio measures.

2. Which company has a better receivable turnover ratio? Why? THREE COMPLETE SENTENCES REQUIRED

3. Calculate the number of days sales in receivables for each company.

4. Calculate the inventory turnover ratio for Famous Daves

5. Calculate the inventory turnover ratio for Texas Roadhouse

6. Describe in two complete sentences what the inventory turnover ratio measures.

7. Which company has a better inventory turnover ratio? Why? THREE COMPLETE SENTENCES REQUIRED

8. Calculate the number of days sales in inventory for each company.

BBQ HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) January 3, 2021 18.101 1,502 December 29, 2019 S 5,325 761 ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net of allowance for doubtful accounts of $277,000 and $132,000, respectively Inventories Prepaid income taxes and income taxes receivable Prepaid expenses and other current assets Assets held for sale Total current assets 4,823 2,271 1.252 1.070 29,019 4,379 1,346 264 1,356 2,842 16,273 Property, equipment and leasehold improvements, net 32,389 19,756 Other assets: Operating lease right-of-use assets Goodwill Intangible assets, net Deferred tax asset, net Other assets 61,634 601 9,967 4.934 1,724 140,268 25,962 640 2.213 6,646 1,591 73,081 S. S LIABILITIES AND SHAREHOLDERS' EQUITY S $ Current liabilities: Accounts payable Current portion of lease liabilities Current portion of long-term debt Accrued compensation and benefits Other current liabilities Total current liabilities 6,385 6,185 2,111 2,390 9,766 26,837 3,967 4,230 616 2,694 4,975 16,482 Long-term liabilities: Lease liabilities, less current portion Long-term debt, less current portion Olli 63,105 22,169 19 26,957 6,258 rin Other liabilities Total liabilities 1,224 113,335 1,610 51,307 93 93 Shareholders' equity: Common stock, $.01 par value, 100,000 shares authorized, 9,307 and 9,272 shares issued and outstanding at January 3, 2021 and December 29, 2019, respectively Additional paid-in capital Retained earnings Total shareholders' equity Non-controlling interest Total equity 8,748 19,370 28,211 (1,278) 26,933 140,268 7,856 14,423 22,372 (598) 21,774 73,081 See accompanying notes to consolidated financial statements. F-5 Table of Contents BBQ HOLDINGS, INC. AND SUBSIDIARIES BBQ HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year Ended January 3, 2021 December 29, 2019 S $ Revenue: Restaurant sales, net Franchise royalty and fee revenue Franchisee national advertising fund contributions Licensing and other revenue Total revenue 109,544 8,919 1,124 1,850 121,437 68,564 12,126 1,616 1,249 83,555 Costs and expenses: Food and beverage costs Labor and benefits costs Operating expenses Depreciation and amortization expenses General and administrative expenses National advertising fund expenses Asset impairment, estimated lease termination charges and other closing costs, net Pre-opening expenses Gain on disposal of property, net Total costs and expenses 33,867 37,228 36,984 5,121 14.395 1,124 5,683 21,541 24,565 22,555 2.231 10,992 1,616 1,296 10 (1,810) 132,602 460 (74) 85,182 Loss from operations (11,165) (1,627) Other (expense) income: Interest expense Interest income Gain on bargain purchase Total other income (expense) (494) 215 (805) 154 13,246 12,595 (279) Income (loss) before income taxes 1,430 (1,906) Income tax benefit 2,837 659 Net income (loss) 4,267 (1,247) (494) 215 Interest expense Interest income Gain on bargain purchase Total other income (expense) (805) 154 13,246 12,595 (279) Income (loss) before income taxes 1,430 (1,906) Income tax benefit 2,837 659 (1,247) Net income (loss) Net loss attributable to non-controlling interest Net income (loss) attributable to shareholders 4,267 680 4,947 598 S S (649) $ Income (loss) per common share: Basic net income (loss) per share attributable to shareholders Diluted net income (loss) per share attributable to shareholders Weighted average shares outstanding - basic Weighted average shares outstanding - diluted 0.54 0.54 9,155 9,168 (0.07) (0.07) 9,099 9,099 See accompanying notes to consolidated financial statements. F-6 Texas Roadhouse, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share data) December 29, 2020 December 31, 2019 363,155 S 107,879 98,418 22,364 4,502 22,212 510,651 99,305 20.267 2,015 18,433 247,899 1,088,623 530,625 127,001 1,056,563 499,801 124,748 Assets Current assets: Cash and cash equivalents ... Receivables, net of allowance for doubtful accounts of $11 at December 29, 2020 and $12 at December 31, 2019 Inventories, net. Prepaid income taxes Prepaid expenses and other current assets Total current assets .. Property and equipment, net of accumulated depreciation of $763,700 at December 29, 2020 and $678,988 at December 31, 2019 Operating lease right-of-use assets, net Goodwill Intangible assets, net of accumulated amortization of $14,341 at December 29, 2020 and $14,141 at December 31, 2019 Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Current portion of operating lease liabilities Current maturities of long-term debt Accounts payable. Deferred revenue-gift cards Accrued wages and payroll taxes Income taxes payable. Accrued taxes and licenses. Other accrued liabilities Total current liabilities, Operating lease liabilities, net of current portion. Long-term debt ....... Restricted stock and other deposits 2,271 65,990 2,325,161 1.234 53,320 1,983,565 $ $ 17,263 61,653 209,258 39,699 19,271 50,000 66,977 232,812 51,982 2,859 24,751 57,666 506,318 572,171 190,000 7,481 30,433 58,914 417.220 538,710 8,249 8,249 22,695 7,481 2,802 103,338 1,382,110 65,522 1,052,396 Restricted stock and other deposits Deferred tax liabilities, net Other liabilities Total liabilities. Texas Roadhouse, Inc. and subsidiaries stockholders' equity: Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding).... Common stock (S0.001 par value, 100,000,000 shares authorized, 69,561,861 and 69,400,252 shares issued and outstanding at December 29, 2020 and December 31, 2019, respectively). Additional paid-in-capital. Retained earnings...... Accumulated other comprehensive loss. Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity. Noncontrolling interests Total cquity Total liabilities and equity 70 145,626 781,915 (106) 927,505 15,546 943,051 2,325,161 69 140,501 775,649 (225) 915,994 15,175 931,169 1,983,565 S See accompanying notes to Consolidated Financial Statements. F F-5 Texas Roadhouse, Inc. and Subsidiaries Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) December 29, 2020 Fiscal Year Ended December 31, 2019 December 25, 2018 $ 2,380,177 17,946 2,398,123 $ 2,734,177 21.986 2,756,163 $ 2,437,115 20,334 2,457,449 Revenue: Restaurant and other sales Franchise royalties and fees Total revenue. Costs and expenses: Restaurant operating costs (excluding depreciation and amortization shown separately below): Food and beverage. Labor. Rent. Other operating Pre-opening.. Depreciation and amortization Impairment and closure, net General and administrative Total costs and expenses. Income from operations Interest expense (income), net Equity (loss) income from investments in unconsolidated affiliates. Income before taxes Income tax (benefit) expense .. Net income including noncontrolling interests .. Less: Net income attributable to noncontrolling interests Net income attributable to Texas Roadhouse, Inc. and subsidiaries Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of ($40), ($1) and $53, 780,646 875,764 54,401 403,726 20,099 117,877 2,263 119,503 2,374,279 23,844 4,091 (500) 19,253 (15,672) 34,925 3,670 31,255 883,357 905,614 52,531 418,448 20,156 115,544 (899) 149,389 2,544,140 212,023 (1,514) 378 213,915 32,397 181,518 7,066 S 174,452 795,300 793,384 48,791 375,477 19,051 101,216 278 136,163 2,269,660 187,789 591 1,353 188,551 24,257 164,294 6,069 $ 158,225 roanantials 110 (1901 34,925 3,670 31.255 181,518 7,066 $ 174,452 164,294 6,069 158,225 119 31.374 3 $ 174,455 (189) 158,036 Net income including noncontrolling interests Less: Net income attributable to noncontrolling interests Net income attributable to Texas Roadhouse, Inc. and subsidiaries Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax of (S40), ($1) and $53, respectively Total comprehensive income Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: Basic Diluted. Weighted average shares outstanding: Basic Diluted. Cash dividends declared per share.. S S S 0.45 0.45 2.47 2.46 2.21 2.20 S 69,438 69.893 0.36 70.509 70.916 1.20 71,467 71,964 1.00 S See accompanying notes to Consolidated Financial Statements. -6 F-6