Chipotle Mexican Grill, Inc. (NYSE: CGM) is a publicly held corporation with more than $5 billion in assets.

To follow are Chipotle’s four basic financial statements for its most recent year, the year ending December 31, 2019.  Please note that all statements have been adapted and condensed for educational use and should not be used for investment decisions.

Income Statement

Statement of Retained Earnings

Balance Sheet

Statement of Cash Flows

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

Questions

1. What form of business organization is Chipotles? How do you know?

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

5. Did chipotles have net income or net loss for 2019? Over what time period was this amount earned?

6. Write the accounting equation for Chipotle’s as of December 31, 2019.

Transcribed Image Text:

Chipotle Mexican Grill, Inc. Income Statement (adapted for classroom use) For Year Ended December 31, 2019 In thousands Net revenues $ 5,586,369 Expenses 5,142,411 Operating income (loss) 443,958 Other expenses and adjustments (93,800) Net income (loss) $ 350,158 %24 Chipotle Mexican Grill, Inc. Income Statement (adapted for classroom use) For Year Ended December 31, 2019 In thousands Net revenues $ 5,586,369 Expenses 5,142,411 Operating income (loss) 443,958 Other expenses and adjustments (93,800) Net income (loss) $ 350,158 %24 Chipotle Mexican Grill, Inc. Income Statement (adapted for classroom use) For Year Ended December 31, 2019 In thousands Net revenues $ 5,586,369 Expenses 5,142,411 Operating income (loss) 443,958 Other expenses and adjustments (93,800) Net income (loss) $ 350,158 %24 Chipotle Mexican Grill, Inc. Income Statement (adapted for classroom use) For Year Ended December 31, 2019 In thousands Net revenues $ 5,586,369 Expenses 5,142,411 Operating income (loss) 443,958 Other expenses and adjustments (93,800) Net income (loss) $ 350,158 %24

Answer rating: 100% (QA)

Solution 1 Chipotles form of business organization Forms of business organizations means the ownership and liabilities of the business The business can be owned by just one person or it could be more ... View the full answer