hw3fsa-1

hw3fsa-1 - Third Homework 1. A separate file includes in...

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Third Homework 1. A separate file includes in the income statement and balance sheet for Brinker International. It is a rapidly growing restaurant chain that owns Chili’s, Romano’s Macaroni Grill, On the Border and Maggiano’s. Use Brinker’s financial statements to answer this question. You will also use these financial statements in some later homework assignments . Cost of sales includes the cost of the food it serves. Restaurant expenses include the costs of preparing and serving the food. a. 2007 2006 Revenues 100 100 COGS 27.9 28 Restaurant Expenses 55.7 55.0 Depreciation and Amort 4.3 4.6 General and Admin 4.4 5.0 Other Gains and Charges -.2 -.5 Operating Income 7.9 7.9 Interest Expense .7 .5 Other Expenses -.1 -- Income before taxes 7.3 7.4 Incomes Taxes 2.0 2.0 Net Income from contin oper 5.3 5.2 Loss from Discon Op 0 -.1 Net Income 5.3 5.1 b. In its Management Discussion and Analysis discussion, Brinker indicates that commodity prices for salmon and produce increased . What ratio in the common size income statement changed as a result of that change and did it increase or decrease? Is the overall change in that common size income statement ratio (as shown in part a) in the same direction as the change due to the change in
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hw3fsa-1 - Third Homework 1. A separate file includes in...

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