The Cheesecake Factory Incorporated (NASDAQ: CAKE) was started by Evelyn Overton when she sold cheesecakes from her

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The Cheesecake Factory Incorporated (NASDAQ: CAKE) was started by Evelyn Overton when she sold cheesecakes from her basement in Detroit in the 1940s. Its first restaurant opened in Beverly Hills in 1978. Cheesecake Factory has been a publicly held corporation since 1993 and currently has 185 restaurants and two bakery facilities. Its fiscal year end is the Tuesday closest to December 31 each year. To follow are Cheesecake Factory’s four basic financial statements for its most recent year, the year ending January 3, 2017.3

The Cheesecake Factory Incorporated Consolidated Statement of Income (Adapted for Educational Use) For Year Ended Januar


The Cheesecake Factory Incorporated Statement of Retained Earnings (Adapted for Educational Use) For Year Ended January


Please note that all statements have been adapted and condensed for educational use and should not be used for investment decisions.




Cheesecake Factory’s complete, unabridged financial statements can be found on its investor relations website.


Requirements

1. What form of business organization is The Cheesecake Factory? How do you know?

2. Identify what line item flows from the income statement to the statement of retained earnings.

3. Identify the line item that flows from the statement of retained earnings to the balance sheet.

4. Identify the line item that flows from the statement of cash flows to the balance sheet.

5. Did The Cheesecake Factory have net income or net loss for its fiscal year 2016? (The Cheesecake Factory’s 2016 fiscal year end is January 3, 2017.) Over what period of time was this amount earned?

6. Write The Cheesecake Factory’s accounting equation as of January 3, 2017.

7. How much in total resources does The Cheesecake Factory have to work with at January 3, 2017? How much does The Cheesecake Factory owe to creditors at January 3, 2017?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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