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In State of Cash Flows 663 APPLY YOUR KNOWLEDGE Serial Case 78 (Learning Objectives 1, 2, 3: Analyze the statement of ash flows for a

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In State of Cash Flows 663 APPLY YOUR KNOWLEDGE Serial Case 78 (Learning Objectives 1, 2, 3: Analyze the statement of ash flows for a company in she restaurant industry) This case is part of The Cheesecake Factory serial shoot antained in every chapter in this Cheesecake Factory has thousands of guests each day who pay immediately after finish their meals. The Cheesecake Factory also sends cash to pay for the food it serves, employ aces, and other expenses. The company might also use sash to set up new restauran brations and renovate older facilities In addition, The Cheesecake Factory has the onion to declare cash dividends and buy trca- cock. It might borrow cash via long-term loans or it might issue common stock for cash. Below are the consolidated statements of cash flows for The Cheesecake Factory Incorpo rated for the fiscal years 2014-2016 Fiscal year 2015 2016 2014 $ 139,4945116,5235 101.276 163,026 1 18.900 138,313 302,520 $ 235,423 5 239,649 The Cheesecake Factory Incorporated Statement of Cash Flows (adapted for educationalus) (In thousands) Cash flows from operating activities 5 Net Income Adjustments to reconcile net income to cash 7 Cash provided by operating activities & cash flows from investing activities: 2 Additions to property and equipment 10 Additions to intangible assets 11 Investments in unconsolidated affiliates Cash used in investing activities 13 Cash flows from financing activities: 14 Miscellaneous borrowings/repayments 15 Cash dividends paid Treasury stock purchases Cash used in financing activities 18 Net change in cash and cash equivalents 19 Cash and cash equivalents at beginning of period 20 Cash and cash equivalents at end of period (115.821) (153,941) (113.982 (1.640 (1.760) (1,879) (42000) $ (159.46115 (1557015115861) 55,764 (42.371) 146,467 $ (133 074) $ $ 9,985 43 854 $ 53.839 5 51,454 43294 35.969) (30,332) (109.370 0140.483) 193.886) $ (127.521) (4.164 $ 3.733) 58,018 61.751 43,854 S 58.018 Data from the US Securities and Exchange Commission EDGAR Company Filings, www.sec.gov Requirements 1. Which activity (operating investing, or financing) generated the most cash for The Cheese cake Factory in 2016, 2015, and 2014? - What specific investing or financing activity used the most cash in 2016? In 2015? In 2014? 3. Did The Cheesecake Factory's overall cash and cash equivalents balance increase, decrease, or stay the same from 2014 to 2015? From 2015 to 2016? 4. Using only the statement of cash flows as evidence, does The Cheesecake Factory appear to be a healthy company? Why or why not? be ments have been condensed and adapted for educational purposes and should investment decisions

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