Question: Refer to the Stockholders’ Equity section of
Refer to the Stockholders’ Equity section of the balance sheets of Panera Bread and Chipotle as of December 31, 2015.
Balance sheets of Panera Bread:
Balance sheets of Chipotle:
Required:
1. For each company, what are the numbers of shares of common stock authorized, issued, and outstanding as of the balance sheet date?
2. Did the balance of the Retained Earnings account of each company increase or decrease during the year? What factors can affect the Retained Earnings balance?
3. How does the total stockholders’ equity of each company compare to that of the other company? Does the difference mean that one company’s stock is more valuable than the other’s? Explain your answer.
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PANERA BREAD COMPANY CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share information) December 29, December 30, 2015 2014 Assets Current assets: Cash and cash equivalents Trade accounts receivable, net 241,886 S 38,211 196,493 36,584 Other accounts receivable 77,575 70,069 Inventories Prepaid expenses and other Deferred income taxes 22,482 59,457 34,479 22,811 51,588 28,621 Assets held for sale 28,699 502,789 776,248 Total current assets 406,166 Property and equipment, net Other assets: 787,294 Goodwill 121,791 120,778 Other intangible assets, net Deposits and other 63,877 70,940 10,613 5,508 Total other assets 196,281 197,226 Total assets 1,475,318 S 1,390,686 Liabilities, Redeemable Noncontrolling Interest, and Stockholders' Equity Current liabilities: Accounts payable Accrued expenses Current portion of long-term debt Liabilities associated with assets held for sale 19,805 $ 19,511 359,464 17,229 2,945 399,443 333,201 Total current liabilities 352,712 Long-term debt 388,971 62,610 70,447 99,784 Deferred rent 67,390 Deferred income taxes 76,589 Other long-term liabilities Total liabilities 58,027 52,566 974,037 654,502 Commitments and contingencies (Note 14) Redeemable noncontrolling interest 3,981 Stockholders' Equity: Common stock, $.0001 par value per share: Class A, 112,500,000 shares authorized; 30,836,669 shares issued and 23,346,188 shares outstanding at December 29, 2015 and 30,703,472 shares issued and 25,442,728 shares out standing at December 30, 2014 3 3 Class B, 10,000,000 shares authorized; 1,381,730 shares issucd and outstanding at December 29, 2015 and 1,381,865 shares issued and outstandi ng at December 30, 2014 Treasury stock, carried at cost; 7,490,481 shares at December 29, 2015 and 5,260,744 shares at December 30, 2014 (1,111,586) (706,073) Preferred stock, S.0001 par value per share; 2,000,000 shares authorized and no shares issued or outstanding at December 29, 2015 and December 30, 2014 Additional paid-in capi tal Accumulated other comprehensive income (loss) Retained earnings Total stock holders' equity Total liabilities, redeemable noncontr olling interest, and stockholders' equity 235,393 214,437 (5,029) (1,360) 1,378,519 1,229,177 736,184 1,390,686 497,300 %24 1,475,318 $ CHIPOTLE MEXICAN GRILL, INC. CONSOLIDATED BALANCE SHEET (in thousands, except per share data) December 31, 2015 2014 (as adjusted) Assets Current assets: Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $1,176 and $1,199 as of December 31, 2015 and December 31, 2014, respectively Inventory 248,005 $ 419,465 38,283 34,839 15,043 15,332 Prepaid expenses and other current assets Income tax receivable 39,965 34,795 58,152 16,488 Investments 415,199 814,647 338,592 Total current assets 859,511 Leasehold improvements, property and equipment, net 1,217,220 1,106,984 Long term investments 622,939 496,106 Other assets 48,321 42,777 Goodwill 21,939 21,939 Total assets 2$ 2,725,066 $ 2,527,317 Liabilities and shareholders' equity Current liabilities: 85, 709 Accounts payable Accrued payroll and benefits 69,613 64,958 73,894 Accrued liabilities 129,275 102,203 Total current liabilities 279,942 245,710 Deferred rent 251,962 219,414 Deferred income tax liability 32,305 21,561 Other liabilities 32,883 28,263 Total liabilities 597,092 514,948 Shareholders' equity: Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of December 31, 2015 and December 31, 2014, respectively Common stock $0.01 par value, 230,000 shares authorized, and 35,790 and 35,394 shares issued as of December 31, 2015 and December 31, 2014, respectively Additional paid-in capital Treasury stock, at cost, 5,206 and 4,367 common shares at December 31, 2015 and December 31, 2014, respectively Accumulated other comprehensive income (loss) Retained eamings Total sharcholders' equity 358 354 1,172,628 1,038,932 (1,234,612) (8,273) 2,197,873 (748,759) (429) 1,722,271 2,127,974 $ 2,725,066S 2,012,369 Total liabilities and shareholders' equity 2,527,317
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