Problem

Business Application Case Analyzing cash flow information usingreal-world dataThe followin...

Business Application Case Analyzing cash flow information using

real-world data

The following data are based on information in the 2008 annual report of Buffalo Wild Wings, Inc. As  of December 28, 2008, there were 560 Buffalo Wild Wings restaurants in 38 states. The parent Company owned 197 and 363 were franchised. Dollar amounts are in thousands.

 

2008

2007

Assets

$243,818

$197,098

Liabilities

72,225

55,433

Stockholders’ equity

171,593

141,665

Cash flows from operating activities

66,107

43,579

Cash flows from financing activities

(60,134)

(54,687)

Cash flows from investing activities

853

873

Cash balance at the beginning of 2007 was$1,521

 

 

Required

a. Calculate the Company’s net change in cash for 2007 and 2008. j


b. Calculate the Company’s ending cash balance for 2007 and 2008.


c. Notice that cash flows from investing activities were negative for each year. Do you think this represents something positive or negative about the Company? Explain your answer.

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