Question

The following condensed income statement is for Alana’s, a fast-food restaurant chain operating in the western United States.
Alana’s Fast-Food Condensed
Income Statement (in 000s)
Revenues
Sales by Company-Operated
Restaurants.................................................................. $ 381,700
Revenues from Franchised and Licensed Restaurants................................................................... 78,600
Other Income................................................................ 6,100
Expenses
Operating Expenses....................................................... (449,900)
Interest Expense............................................................ (10,400)
Income Tax Expense..................................................... (1,800)
Other Expenses............................................................. (800)
Net Income................................................................... $ 3,500
Required:
(a) Describe how the following three groups of decision makers might use Alma’s income statement data:
(1) Company stockholders (its owners)
(2) Company executives
(3) Bankers
(b) Also identify additional information regarding this company’s income statement data that each group of decision makers might request.


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  • CreatedMarch 27, 2015
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