Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly. 3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense. 4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability. 1, 2 and 3 2, 3 and 4 1, 3 and 4 All of the above Assignment Score: 66.23% Check My Work uses remaining.
Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly. 3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense. 4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability. 1, 2 and 3 2, 3 and 4 1, 3 and 4 All of the above Assignment Score: 66.23% Check My Work uses remaining.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Total operating expenses
Operating income
Required:
$(6,742)
$(5,695)
$805
$290
a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place.
Chipotle Mexican Grill, Inc.
Operating Income.
For the Years Ended December 31
(in thousands)
Year 2
Amount
Year 2
Year 1
Year 1
Percent
Amount
Percent
Revenues:
Food and beverage
$7,457
%
$5,921
%
Delivery service
90
%
64
%
Total revenues
$7,547
%
$5,985
%
Restaurant operating costs:
Food, beverage, packing
$(2,309)
%
$(1,933)
Labor
(1,918)
%
(1,593)
%
Occupancy (rent)
(416)
%
(388)
0/a
Marketing, utilities, other
(1,197)
%
(1,030)
%
General and administrative
(607)
%
(466)
%
Depreciation
(255)
%
(238)
9
Miscellaneous expenses
(40)
%
(47)
%
Total operating expenses
$(6,742)
%
$(5,695)
%
Operating income
$805
%
$290
%
b. Based on the calculations above, which of the following statements are correct?
1. Operating income as a percent of revenues increased from Year 1 to Year 2.
2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly.
3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense.
4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability.
1, 2 and 3
2, 3 and 4
1, 3 and 4
All of the above
Assignment Score: 66.23%
Check My Work uses remaining.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 1 steps
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