The Cheesecake Factory Incorporated (NASDAQ: CAKE) is publicly held and had morethan 93 million common shares outstanding as of the end of the 2016 fiscal year. The companyhas preferred stock authorized but did not have any preferred stock issued.During fiscal year 2016, The Cheesecake Factory declared and paid cash dividends of$0.88 per share, totaling approximately $42.3 million. During that same year, it purchased 2.9million shares of its own common stock at an approximate cost of $146.5 million.Requirements1. What impact, if any, would the cash dividend have had on The Cheesecake Factory’sassets, liabilities, and equity during 2016?2. What impact, if any, would the cash dividend have had on The Cheesecake Factory’srevenues and expenses during 2016?3. On which financial statement(s) would the cash dividends be listed for 2016?4. What impact, if any, would the purchase of the common stock have had on The CheesecakeFactory’s assets, liabilities, and equity during 2016?5. What impact, if any, would the purchase of the common stock have had on The CheesecakeFactory’s revenues and expenses during 2016?6. On which financial statement(s) would the repurchase of the common stock be listed for 2016?
The Cheesecake Factory Incorporated (NASDAQ: CAKE) is publicly held and had more
than 93 million common shares outstanding as of the end of the 2016 fiscal year. The company
has
During fiscal year 2016, The Cheesecake Factory declared and paid cash dividends of
$0.88 per share, totaling approximately $42.3 million. During that same year, it purchased 2.9
million shares of its own common stock at an approximate cost of $146.5 million.
Requirements
1. What impact, if any, would the cash dividend have had on The Cheesecake Factory’s
assets, liabilities, and equity during 2016?
2. What impact, if any, would the cash dividend have had on The Cheesecake Factory’s
revenues and expenses during 2016?
3. On which financial statement(s) would the cash dividends be listed for 2016?
4. What impact, if any, would the purchase of the common stock have had on The Cheesecake
Factory’s assets, liabilities, and equity during 2016?
5. What impact, if any, would the purchase of the common stock have had on The Cheesecake
Factory’s revenues and expenses during 2016?
6. On which financial statement(s) would the repurchase of the common stock be listed for 2016?
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What impact, if any, would the common stock have had on the company’s revenue and expenses during 2016?
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