a) Cash and cash equivalents at the beginning of 2016 (end of 2015) b) Cash and
ID: 2798349 • Letter: A
Question
a) Cash and cash equivalents at the beginning of 2016 (end of 2015)
b) Cash and cash equivalents at the end of 2016
c) Cash provided/used in operating activities for FY 2016 and FY 2015
d) Cash provided/used in investing activities for FY 2016 and FY 2015
e) Cash provided/used in financing activities for FY 2016 and FY 2015
f) Using the cash flow statement tell me why there is no debt on the balance sheet
g) Using the cash flow statement tell me what the dividend yield is for FY 2016 and FY 2015.
Additional information needed:
Market price at 12/31/16 = $60 per share
Market price at 12/31/15 = $57 per share
Shares outstanding at 12/31/16 = 47,981,000
Shares outstanding at 12/31/15 = 48,833.000
h) Summarize each section of the Cheesecake Cash Flow (operating, investing and financing) for me in words. Tell me what makes up most of the activity, what you think that represents, and is it good or bad for the company
THE CHEESECAKE FACTORY INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) l Year 2016 2014 Cash flows from opcrating activities: S 139,494 6,523 101,276 Net income Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization expenses Deferred income taxes Impairment of assets and lease terminations Stock-based compensation Tax impact of stock options excrcised, net of cancellations. Excess tax benefit related to stock options e Other Changes in assets and liabilities: 88,010 85,563 82,835 (1,005) 114 6,011 20,053 13,722 (13,861) 3,592 245 16,817 8,906 (8,861) 2,059 (12,309) Accounts receivable Other receivables ,473 8,066 (5,079) (6,867) (10,331) (10,462) Prepaid expenses Other assets Accounts Income taxes receivable/payable Other accrued c 752 21,837 35,995 302,520 (3,743) (5,799) (12,931) (1,356) 645) (18,180) (12,854) 39,848 239,649 payable Cash provided by operating activities.. 235.423 Cash flows from investing activities: Additions to property and equipment Additions to intangible a Investments in unconsolidated affiliates (115,821) (1,640) 153,941)(113,982) 879) (1,760) (42,000) 159,461 Cash used in investing activities 155,701) 115,861 Cash flows from financing activities: 143 Deemed landlord financing proceeds Deemed landlord financing payments Borrowings on credit facility Repayments on credit facility Proceeds from exercise of stock options Excess tax benefit related to stock options exercised Cash dividends paid Treasury stock purchases 14. (2,650) 25,000 (25,000) 22,940 17,246 (3,118) 60,000 (60,000) 27,997 35,000 (35,000) 28,378 13,861 (42,371) 146,46 133,074 109.371 93,886 (14,164) 58.018 (30,332) 140,483) 121 Cash used in financing activities 9,985 43,854 (3,733) 61,751 Net change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of Supplemental disclosures: S 53,839 S43,854 S58,018 Interest paid Income taxes pai Construction payable 6,038 S 17,932 S 6,541 S 6,057 S 30,410 S41,074 13,500 SExplanation / Answer
a) Cash and cash equivalents at the beginning of 2016 (end of 2015) = $43,854
b) Cash and cash equivalents at the end of 2016 = $53,839
c) Cash provided/used in operating activities for FY 2016 and FY 2015 = $3,02,520 and $2,35,423
d) Cash provided/used in investing activities for FY 2016 and FY 2015 = ($1,59,461) and ($1,55,701)
e) Cash provided/used in financing activities for FY 2016 and FY 2015 = ($1,33,074) and ($93,886)
f) There is no debt on the balance sheet as all the debt has been repaid in the years in which it has been taken.
g)
h) Cash flow from operating activities
There is a cash inflow for all the three years from operating actvities which is good for the company. The inflow is as a result of increase in cash flow due to non cash items like depreciation, impairment , tax effect etc. Also the increase in liabilities and a decrease in assets have led to a positive cash flow. Overall the company has more cash inflow than outflow from business operations.
Cash flow from investing activities
There is cash outflow from investing activities in all the years and the outflow has increased year on year. This is a good sign because the company is investing in assets which will give results or profits in the future. Major cash outflow is for the purchase of equipment which can be used for production to generate sales.
Cash flow from financing activities
There is cash outflow from financing activities in all the years and the outflow has increased from 2014 to 2016. This is bad for the company becuase the cash outflow has occured majorly due to sale of treasury stock which will result in decrease in equity. This will decrease the asset base of the company.
2016 2015 Dividend paid per share 42371000/47981000 = 0.88 35969000/48833000 = 0.73 Share price $60 $57 Dividend yield 1.4% 1.3%Related Questions
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