a. Current ratio b. Quick ratio c. Profit margin %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
California Pizza Kitchen opened its first restaurant In Beverly Hills in 1985. Almost immediately after the first location opened, it expanded from California to more than 250 locations in more than 30 states and 11 countries. California Pizza Kitchen completed an initial public offering in August 2000 and traded on the NASDAQ National Market under the ticker symbol CPKI. On July 7, 2011, Golden Gate Capital completed the acquisition of California Pizza Kitchen and, as a result of the acquisition, the company’s common stock is no longer publicly traded. |
CALIFORNIA PIZZA KITCHEN, INC., AND SUBSIDIARIES Consolidated Statements of Operations Years ended January 2, 2011, January 3, 2010, and December 28, 2008 (amounts in thousands, except for per share data) |
||||||||||
2010 | 2009 | 2008 | ||||||||
Revenues: | ||||||||||
Restaurant sales | $ | 648,201 | $ | 669,270 | $ | 691,711 | ||||
Royalties from licensing agreement | 6,972 | 8,589 | 7,430 | |||||||
Domestic franchise revenues | 4,205 | 3,789 | 3,862 | |||||||
International franchise revenues | 2,658 | 2,333 | 2,376 | |||||||
Total revenues | 662,036 | 683,981 | 705,379 | |||||||
Costs and expenses: | ||||||||||
Food, beverage and paper supplies | 151,367 | 156,816 | 168,161 | |||||||
Labor | 243,338 | 250,155 | 250,081 | |||||||
Direct operating and occupancy | 151,770 | 144,557 | 142,951 | |||||||
Cost of sales | 546,475 | 551,528 | 561,193 | |||||||
General and administrative | 54,556 | 54,616 | 55,467 | |||||||
|
39,641 | 42,816 | 42,934 | |||||||
Pre-opening costs | 3,524 | 2,098 | 4,733 | |||||||
Loss on impairment of property and equipment | 19,164 | 23,366 | 13,761 | |||||||
Store closure costs | 1,980 | 811 | 1,305 | |||||||
Litigation, settlement and other costs | 8,844 | 1,694 | 821 | |||||||
Total costs and expenses | 674,184 | 676,929 | 680,214 | |||||||
Operating (loss)/income | (12,148) | 7,052 | 25,165 | |||||||
Interest expense, net | (19) | (1,043) | (1,579) | |||||||
(Loss)/income before income tax (benefit)/provision | (12,167) | 6,009 | 23,586 | |||||||
Income tax (benefit)/provision | (11,354) | (2,312) | 5,189 | |||||||
Net (loss)/income | $ | (813) | $ | 8,321 | $ | 18,397 | ||||
Net (loss)/income per common share: | ||||||||||
Basic | $ | (0.03) | $ | 0.32 | $ | 0.46 | ||||
Diluted | $ | (0.03) | $ | 0.32 | $ | 0.46 | ||||
Weighted average shares used in calculating net (loss)/income per common share: |
||||||||||
Basic | 24.743 | 24.319 | 25.448 | |||||||
Diluted | 24.743 | 24.398 | 25.466 | |||||||
CALIFORNIA PIZZA KITCHEN, INC., AND SUBSIDIARIES Consolidated Balance Sheets January 2, 2011, and January 3 2010 (in thousands, except for share data) |
|||||||||
2010 | 2009 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 55,230 | $ | 55,424 | |||||
Other receivables | 23,399 | 24,346 | |||||||
Inventories | 10,002 | 9,552 | |||||||
Current |
10,350 | 9,201 | |||||||
Prepaid rent | 686 | 8,952 | |||||||
Other prepaid expenses | 10,253 | 4,666 | |||||||
Total current assets | 109,920 | 112,141 | |||||||
Property and equipment, net | 301,881 | 304,451 | |||||||
Noncurrent deferred tax asset, net | 24,413 | 27,323 | |||||||
8,617 | 8,617 | ||||||||
Other intangibles, net | 7,489 | 7,366 | |||||||
Other assets | 10,608 | 9,204 | |||||||
Total assets | $ | 462,928 | $ | 469,102 | |||||
Liabilities and |
|||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 28,380 | $ | 15,768 | |||||
Accrued compensation and benefits | 26,095 | 26,023 | |||||||
Accrued rent | 29,536 | 23,299 | |||||||
Deferred rent credits | 8,323 | 7,910 | |||||||
Other accrued liabilities | 44,290 | 41,515 | |||||||
Gift card liability | 27,127 | 31,690 | |||||||
Store closure reserve | 88 | 1,261 | |||||||
Total current liabilities | 163,839 | 147,466 | |||||||
Long-term debt | --- | 24,000 | |||||||
Other liabilities | 25,304 | 18,695 | |||||||
Deferred rent credits, net of current portion | 38,663 | 37,964 | |||||||
Income taxes payable, net of current portion | 744 | 11,760 | |||||||
Commitments and contingencies | - | - | |||||||
Stockholders’ equity: | |||||||||
Common stock—$0.01 par value, 80,000,000 shares authorized, 26,279,797 and 25,895,800 shares issued and outstanding at January 2, 2011, and January 3, 2010, respectively |
263 | 259 | |||||||
Additional paid-in capital | 196,563 | 191,000 | |||||||
|
37,552 | 37,958 | |||||||
Total stockholders’ equity | 234,378 | 229,217 | |||||||
Total liabilities and stockholders’ equity | $ | 462,928 | $ | 469,102 | |||||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
2. | By what amount did |
Solution
by Bartleby Expert
Follow-up Question
Thanks, need help with the other ratios as well.
Solution
by Bartleby Expert
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education