Total Liabilities and Assets: DEC 2019 $2,8480.593 Jan 2019 $1,314,153

The

Cheesecake Factory

Incorporated (NASDAQ:

CAKE)

operates over 200 restaurants and two bakeries in the United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its own use in its restaurants and for sale to a wide variety of wholesalers and retailers. The

Cheesecake Factory's

inventories consist of restaurant food and supplies, bakery raw materials, and bakery finished goods. To account for its inventory, the company uses the average-cost method at its restaurants and the FIFO method at its bakeries. The

Cheesecake Factory

Incorporated's financial statements from its

2019

Form 10-K are as follows:

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What cost method does The

Cheesecake Factory

use for its inventory at its restaurants?

Question content area bottom

Part 1

A.

Average cost

B.

Specific identification

C.

FIFO

D.

LIFO

The Cheesecake Factory Incorporated Consolidated Statements of Income (condensed and adapted for educational use) (in thousands) 11/26/23, 9:27 PM Data Table The Cheesecake Factory Incorporated Consolidated Balance Sheets (condensed and adapted for educational use) (in thousands, except share data) Assets Current assets: Cash and cash equivalents Accounts receivable Income tax receivable Other receivables Inventories Prepaid expenses Total current assets Property and equipment, net Other assets: Intangible assets, net Prepaid rent Operating lease assets Other assets Total other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Other accrued expenses Total current liabilities Noncurrent liabilities Stockholders' equity: Preferred stock Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive loss Total stockholders' equity December 31, 2019 January 1, 2019 \begin{tabular}{rr} 58,416$ & 26,578 \\ 25,619 & 20,928 \\ 4,626 & 0 \\ 64,683 & 68,193 \\ 47,225 & 38,886 \\ 43,946 & 40,645 \\ \hline 244,515 & 195,230 \\ \hline 831,599 & 913,275 \\ & \\ \hline 437,207 & 26,209 \\ 0 & 34,961 \\ & 0 \\ \hline 1,240,976 & 144,458 \\ \hline 86,296 & 205,628 \\ \hline 1,764,479 & 1,314,133 \\ \hline 2,840,593 & $ \end{tabular} 0 \begin{tabular}{rrr} & 0 & 0 \\ 977 & 967 \\ 855,989 & 828,676 \\ 1,408,333 & 1,384,494 \\ (1,693,122) & (1,642,120) \\ & (435) & (938) \\ \hline & 571,742 & 571,079 \\ \hline \multirow{2}{*}{$} & 2.840 .593 & 1.314 .153 \end{tabular}