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Given the following data about XYZ Corporation, provide the following analytic measurements: (Show work) 1. Gross Profit % of Net Sales 2. Net Income Rate

Given the following data about XYZ Corporation, provide the following analytic measurements: (Show work)

1. Gross Profit % of Net Sales

2. Net Income Rate of Return on Net Sales

3. Return on Assets

4. Return on Equity

5. Earnings Per Share

XYZ CORP. CONSOLIDATED INCOME STATEMENT

(In thousands, except per share data)

2015

2014

Revenue

$

4,501,223

$

4,108,269

Restaurant operating costs (exclusive of depreciation and amortization shown separately below):

Food, beverage and packaging

1,503,835

1,420,994

Labor

1,045,726

904,407

Occupancy

262,412

230,868

Other operating costs

514,963

434,244

General and administrative expenses

250,214

273,897

Depreciation and amortization

130,368

110,474

Pre-opening costs

16,922

15,609

Loss on disposal of assets

13,194

6,976

Total operating expenses

3,737,634

3,397,469

Income from operations

763,589

710,800

Interest and other income (expense), net

6,278

3,503

Income before income taxes

769,867

714,303

Provision for income taxes

(294,265)

(268,929)

Net income

$

475,602

$

445,374

Other comprehensive income (loss), net of income taxes:

Foreign currency translation adjustments

(6,322)

(2,049)

Unrealized loss on investments, net of income taxes of $946, $0, and $0

(1,522)

-

Other comprehensive income (loss), net of income taxes

(7,844)

(2,049)

Comprehensive income

$

467,758

$

443,325

Earnings per share:

Basic

$

15.30

$

14.35

Diluted

$

15.10

$

14.13

Weighted average common shares outstanding:

Basic

31,092

31,038

Diluted

31,494

31,512

XYZ CORP. CONSOLIDATED BALANCE SHEET

(In thousands, except per share data)

December 31,

2015

2014

(as adjusted)

Assets

Current assets:

Cash and cash equivalents

$

248,005

$

419,465

Accounts receivable, net of allowance for doubtful accounts of $1,176 and $1,199 as of December 31, 2015 and December 31, 2014, respectively

38,283

34,839

Inventory

15,043

15,332

Prepaid expenses and other current assets

39,965

34,795

Income tax receivable

58,152

16,488

Investments

415,199

338,592

Total current assets

814,647

859,511

Leasehold improvements, property and equipment, net

1,217,220

1,106,984

Long term investments

622,939

496,106

Other assets

48,321

42,777

Goodwill

21,939

21,939

Total assets

$

2,725,066

$

2,527,317

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

$

85,709

$

69,613

Accrued payroll and benefits

64,958

73,894

Accrued liabilities

129,275

102,203

Total current liabilities

279,942

245,710

Deferred rent

251,962

219,414

Deferred income tax liability

32,305

21,561

Other liabilities

32,883

28,263

Total liabilities

597,092

514,948

Shareholders' equity:

Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of December 31, 2015 and December 31, 2014, respectively

-

-

Common stock $0.01 par value, 230,000 shares authorized, and 35,790 and 35,394 shares issued as of December 31, 2015 and December 31, 2014, respectively

358

354

Additional paid-in capital

1,172,628

1,038,932

Treasury stock, at cost, 5,206 and 4,367 common shares at December 31, 2015 and December 31, 2014, respectively

(1,234,612)

(748,759)

Accumulated other comprehensive income (loss)

(8,273)

(429)

Retained earnings

2,197,873

1,722,271

Total shareholders' equity

2,127,974

2,012,369

Total liabilities and shareholders' equity

$

2,725,066

$

2,527,317

XYZ CORP. CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY

(in thousands)

Common Stock

Additional

Treasury Stock

Accumulated Other

Shares

Amount

Paid-In

Capital

Shares

Amount

Retained

Earnings

Comprehensive

Income (Loss)

Total

Stock-based compensation

59,465

59,465

Stock plan transactions and other

396

4

(211)

(207)

Excess tax benefit on stock-based compensation

74,442

74,442

Acquisition of treasury stock

839

(485,853)

(485,853)

Net income

475,602

475,602

Other comprehensive income (loss), net of income tax

(7,844)

(7,844)

Balance, December 31, 2015

35,790

$

358

$

1,172,628

5,206

$

(1,234,612)

$

2,197,873

$

(8,273)

$

2,127,974

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