Business Application Case Analyzing earnings information using
real-world data
The following data are based on information in the 2008 annual report of Cracker Barrel Old Country Store. As of September 30,2008, Cracker Barrel operated 579 restaurants and gift shops in 41 states. Dollar amounts are in thousands.
| 2008 | 2007 |
Assets | $1,313,703 | $1,265,030 |
Liabilities | 1,220,952 | 1,160,907 |
Stockholders’ equity | 92,751 | 104,123 |
Revenues | 2,384,521 | 2,351,576 |
Expenses | 2,318,968 | 2,189,511 |
Dividends | 16,504 | 14,908 |
Retained earnings at end of 2006 were $302,245 | ||
Required
a. Calculate the Company’s net income and retained earnings for 2007 and 2008.
b. Which increased (or decreased) by the greatest percentage amount: revenues or net income? Show your computations. ‘
c. For each year, calculate the Company’s net income as a percentage of its revenues. Show your computations.
d. Did the Company perform better in 2007 or 2008? Explain your answer.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.