PROBLEM 2 - INTERPRETING A REAL-WORLD STATEMENT OF CASH FLOws Use Chipotle's financial statements to answer the following questions 1. Did Chipotle have a net inflow or a net outflow of cash related to operations in 2018? 2. Did Chipotle have a net inflow or a net outflow of cash related to investing activities in 2018? Did Chipotle have a net inflow or a net outflow of cash related to financing activities in 2018? 3. 4. How much cash did Chipotle spend on PP&E purchases in 2018? s. How much cash did Chipotle spend repurchasing stock in 2018? 6. How much cash did Chipotle collect from customers in 2018? 62 - 7. How much cash did Chipotle pay for inventory in 2018? 572 1601 22-113 8. Why does Chipotle add back "Depreciation and amortization expense" in the Operating section of its Statement of Cash Flows? d on Chipotle's Statement of Cash Flows, does it appear that the company is in the part of its life cycle ere it has slowing growth opportunities within the firm and is therefore returning cash to investors? Briefly explain your answer. CHIPOTLE FINANCIAL STATEMENTS FOR PROBLEM 2 ON GRADED HOMEWORK 4 CHIPOTLE Consolidated Balance Sheets (In millions) Year ended Dec. 31, 2018 Year ended Dec. 31, 2017 or ASSETS Cash and cash equivalents Accounts receivable, net Invento Prepaid expenses and other current assets Income tax receivable nvestments s 215 40 62 54 51 427 325 Total current assets Property and equipment, net Goodwill Other assets Total assets 1,379 13 20 $2,266 1,338 26 s 2,046 LIABILITES & STOCKHOLDERS' EQUITY Accounts payable Accrued payroll and benefits Other accrued liabilities 113 114 223 450 331 43 824 63 83 159 324 316 41 681 Total current liabilities Deferred rent Other long-term liabilities Total liabilities Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive loss 1,374 (2,501) 1,305 (2,334) 1,442 Total stockholders' equity Total liabilities & stockholders' equity s2,266 2,046 CHIPOTLE CHIPOTLE Consolidated Income Statements (In millions) Year ended Dec. 31, 2018 Year ended Dec. 31, 2017 $ 44% Operating expenses: 1,326 347 1,055 1,206 Wages expense General and administrative expense Loss on disposal and impairment of assets 948 tion and amortization expense 62 14 258 10 13 Income from operations 271 Interest and other income, net Income before income taxes 2685 276 100 176 Net income Earnings per share: s 6.35 s 6.19 Diluted $6.31 6.17 CHIPOTLE Consolidated Statements of Cash Flows (In millions) OPERATING ACTIVITIES Net Income Year ended Dec. 31, 2018 Year ended Dec 31,2017 Adjustments to reconcile net income to cash from operating activities: Loss on disposal and impairment of assets 62 Stock-based compensation expense Other 69 65 Changes in assets and liabilities: Inventory Prepaid e Other assets Accrued expenses and other current liabilities Other, net 95 39 Net cash provided by operating activities 620 467 INVESTING ACTIVITIES Purchases of pr Purchases of investments (485) (200) Net cash used in investing activities (87) FINANCING ACTIVITIES Stock repurchases Other, net (283) 97 118 $215 Net vided by financing activities (167) 65 NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD 21 $280 Financial Statements for ACC102 Graded Homework 4, Page 3 of 3