Kansas Pizza Pantry opened its first restaurant in Lawrence, Kansas in 1985. Almost immediately after the first location opened, it expanded from Kansas Pizza Pantry to more than 250 locations in more than 30 states and 11 countries. Kansas Pizza Pantry completed an initial public offering in August 2000. Several years ago, Golden Gate Capital completed the acquisition of Kansas Pizza Pantry and, as a result of the acquisition, the company's common stock is no longer publicly traded.

KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES
Consolidated Statements of Operations
(amounts in thousands, except for per share data)

Year 3

Year 2

Year 1

Revenues:

Restaurant sales

$

633,106

$

652,685

$

665,616

Royalties from licensing agreement

6,722

8,239

6,580

Domestic franchise revenues

4,200

2,934

2,757

International franchise revenues

3,153

2,178

2,121

Total revenues

647,181

666,036

677,074

Costs and expenses:

Food, beverage and paper supplies

149,732

155,181

165,526

Labor

237,383

247,850

247,276

Direct operating and occupancy

142,920

142,473

140,367

Cost of sales

530,035

545,504

553,169

General and administrative

50,831

51,041

51,642

Depreciation and amortization

37,156

40,331

40,299

Pre-opening costs

3,369

1,893

4,478

Loss on impairment of property and equipment

18,952

23,441

13,336

Store closure costs

1,758

564

1,033

Litigation, settlement and other costs

8,909

1,659

736

Total costs and expenses

651,010

664,433

664,693

Operating (loss)/income

(6,279

)

3,303

12,381

Interest expense, net

(26

)

(783)

(1,324)

(Loss)/income before income tax (benefit)/provision

(6,305

)

2,520

11,057

Income tax (benefit)/provision

(5,239

)

(2,141)

2,395

Net (loss)/income

$

(1,066

)

$

4,661

$

8,662

Net (loss)/income per common share:

Basic

$

(0.07

)

$

0.19

$

0.34

Diluted

$

(0.07

)

$

0.19

$

0.34

Weighted average shares used in calculating net (loss)/income per common share:

Basic

24,738

24,564

25,193

Diluted

24,738

24,393

25,211

KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except for share data)
		Year 3				Year 2
	Assets
	Current assets:
	Cash and cash equivalents	$	14,465			$	23,724
	Other receivables		12,844				13,041
	Inventories		6,427				6,557
	Current deferred tax asset, net		8,675				7,576
	Prepaid rent		306				5,957
	Other prepaid expenses		2,818				2,281
	Total current assets		45,535				59,136
	Property and equipment, net		242,446				256,416
	Noncurrent deferred tax asset, net		22,601				25,511
	Goodwill		4,722				4,872
	Other intangibles, net		5,087				4,964
	Other assets		8,813				7,409
	Total assets	$	329,204			$	358,308
	Liabilities and stockholders’ equity
	Current liabilities:
	Accounts payable	$	17,675			$	11,763
	Accrued compensation and benefits		23,923				23,701
	Accrued rent		21,174				20,287
	Deferred rent credits		4,358				4,245
	Other accrued liabilities		14,190				11,915
	Gift card liability		14,877				21,140
	Store closure reserve		79				351
	Total current liabilities		96,276				93,402
	Long-term debt		---				22,800
	Other liabilities		9,986				8,728
	Deferred rent credits, net of current portion		33,677				32,978
	Income taxes payable, net of current portion		329				10,125
	Commitments and contingencies		-				-
	Stockholders’ equity:
	Common stock—$0.01 par value, 80,050,000 shares authorized, 27,100,000 and 26,700,000 shares issued and outstanding at end of Year 3, and Year 2, respectively		271				267
	Additional paid-in capital		174,563				174,500
	Retained earnings		14,102				15,508
	Total stockholders’ equity		188,936				190,275
	Total liabilities and stockholders’ equity	$	329,204			$	358,308

Required:
1. Compute the following ratios for Year 3 using information from the company annual report that was issued before Kansas Pizza Pantry was acquired. Assume a market price per share of $1.26.(Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Negative amounts should be indicated by a minus sign.)

Ratios are: Return on equity, Net profit margin, Inventory turnover, Current ratio, Quick Ratio, Debt-to equity ratio, Price/earnings ratio.