Hello,

I need a small amount of help with reviewing the Shake Shack EDGAR 10k. I think I answered a few of the questions correctly, but need it revised to see if I'm correct. And need help with a few I didn't answer. I can send the Shake Shack yearly report in a PDF or the link to the sec.gov (SHAK) can take you there.

It's not time very time consuming, or much calculations involved. Can you help me, please? I put an *asterisk by what I though was correct.

Question 3

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

The current ratio of the firm is:

a.less than 0.00

b.between 0.00 and 1.00

*c.between 1.00 and 2.00

d.greater than 2.00

Question 4

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

This current ratio indicates that the organization's:

a.current assets may not be sufficient to pay its current liabilities next year.

*b.current assets will likely be sufficient to pay its current liabilities next year.

c.current assets will likely be sufficient to pay its total liabilities next year.

d.total assets may not be sufficient to pay its current liabilities next year.

Question 5

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

Using Net Income Attributable to the company, the Net Profit (or Net Income) Ratio for 2018 was:

a.less than 0%

*b.between 0% and 5%

c.between 5% and 10%

d.greater than 10%

Question 6

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

The Net Profit (or Net Income) Ratio for 2018 was: Net Income = Total Revenues - Total Expenses.

a.less than 0%

*b.between 0% and 5%

c.between 5% and 10%

d.greater than 10%

Question 7

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

The Net Profit (or Net Income) Ratio illustrates the portion of an organization's:

*a.net income, or earnings, that is retained after expenses are paid.

b.net income, or earnings, that is retained before expenses are paid.

c.total revenue that is retained before expenses are paid.

d.total revenue that is retained after expenses are paid.

Question 8

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

A trend analysis for the Net Profit (or Net Income) Ratio for 2017 and 2018 would conclude that:

*a.profitability improved from 2017 to 2018.

b.profitability worsened from 2017 to 2018.

c.profitability remained the same in 2017 and 2018.

d.the firm was unprofitable in both 2017 and 2018.

Question 9

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

Operating Cash Flows for 2018 was:

a.less than $0

b.between $0 and $50,000

c.between $50,000 and $100,000

d.greater than $100,000

Question 10

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

Investing Cash Flows for 2018 was:

a.a positive number, and greater than Operating Cash Flows.

*b.a negative number, and larger in absolute terms than Operating Cash Flows.

c.the same as Operating Cash Flows.

d.the same as Financing Cash Flows.

Question 11

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

The combined amount of Operating Cash Flows and Investing Cash Flows:

a.increased Financing Cash Flows but did not increase the ending cash balance.

b.increased the ending cash balance but did not increase Financing Cash Flows.

c.increased both Financing Cash Flows and the ending cash balance.

d.served as a net negative influence on Financing Cash Flows and/or the ending cash balance.

Question 12

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

Did the organization believe that it faced material liabilities from Legal Contingencies related to employment-related claims and slip and fall cases?

a.Yes, because of a large class action lawsuit related to spilled coffee.

b.Yes, because of a large class action lawsuit related to an icy sidewalk.

c.Yes, because of a large class action lawsuit related to religious discrimination.

*d.No.

Question 13

Questions 3-13 refer to the firm that issued its 2018 financial statements as Form 10-K. Please use the 2018 Form 10-K as a reference to answer these questions.

The very first Risk Factor that the organization listed on its 10-K was:

a.the selection, design and execution of appropriate business strategies.

b.a potential loss in a lawsuit involving religious discrimination against non-Christians.

c.a potential loss in a lawsuit involving spilled coffee that caused skin burns.

d.a potential loss of market share due to unhealthy perceptions regarding the organization's product.