Question
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)
|
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|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| 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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