Solve the following questions based on the provided financial statements: QUESTION $1$

Based on Chipotle's current ratio $($current assets $/$ current liabilities$),$ the company's liquidity has $($round to two decimal places$)$:

a$.$

increased from December $31,2022$ to December $31,2023.$

b$.$

decreased from December $31,2022$ to December $31,2023.$

c$.$

did not change from December $31,2022$ to December $31,2023.$

d$.$

cannot be determined

QUESTION $2$

Which of Chipotle's accounts was increased when the company made a sale on account $($credit sale$)?$

a$.$

Cash.

b$.$

Inventories.

c$.$

Accounts receivable.

d$.$

Accounts payable.

QUESTION $3$

When Chipotle collects an accounts receivable from a customer:

a$.$

net income does not change.

b$.$

total assets increase.

c$.$

retained earnings increase.

d$.$

accounts payable decreases.

QUESTION $4$

Chipotle$$s most recent income statement shows the company$$s results of operations:

a$.$

At December $31,2023.$

b$.$

For year ended December $31,2022.$

c$.$

At January $1,2024.$

d$.$

For the year ended December $31,2023.$

QUESTION $5$

Chipotle's total revenue earned from both cash and credit sales for its most recent year end was $($in thousands$)$:

a$.$

$$9,871,649.$

b$.$

$$1,557,813.$

c$.$

$$1,228,737.$

d$.$

$$8,313,836.$

QUESTION $6$

How much did Chipotle's total revenues exceed its total expenses for the year ended $12/31/2023($in thousands$)?$

a$.$

$$9,871,649.$

b$.$

$$8,313,836.$

c$.$

$$1,557,813.$

d$.$

$$1,228,737.$

QUESTION $7$

At December $31,2023,$ Chipotle had $$39,309($in thousands$)$ of inventory on hand.

a$.$

True

b$.$

False

QUESTION $8$

Food, beverage and packing costs incurred by Chipotle for the year ended $12/31/2023$ were $($in thousands$)$:

a$.$

$$39,309.$

b$.$

$$117,462.$

c$.$

$$2,912,564.$

d$.$

$$1,428,747.$

QUESTION $9$

Assuming rising prices, Chipotle's inventory method results in more net income than if LIFO was used.

True

False

QUESTION $10$

Calculate Chipotle's inventory turnover ratio $($Food$,$ beverage and packaging costs $/$ Inventory$)$ for both $2022$ and $2023.$ Then select the correct answer below.

a$.$

Chipotle sold inventory more quickly in $2023$ than in $2022.$

b$.$

Chipotle sold inventory more slowly in $2023$ than in $2022.$

c$.$

Chipotle sold inventory at the same rate in $2023$ as in $2022.$

d$.$

cannot be determined.