The Cheesecake Factory Incorporated (NASDAQ: CAKE) is publicly held and had more than 93 million common shares
Question:
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 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 2.9 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?
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.