Posted in A recent income statement for Applebees International (a restaurant chain) is provided below. It operates both company-owned and franchised restaurants.
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Applebees International, Inc. |
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(Dollars in thousands except per share amounts.) |
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Revenues: |
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Company restaurant sales |
$651,119 |
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Franchise income |
93,225 |
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Total operating revenues |
744,344 |
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Cost of company restaurant sales: |
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Food and beverage |
175,977 |
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Labor |
208,996 |
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Direct and occupancy |
164,965 |
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Pre-opening expense |
1,701 |
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Total cost of company restaurant sales |
551,639 |
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Operating expenses: |
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General and administrative expenses |
72,935 |
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Amortization of intangible assets |
5,851 |
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Loss on disposition of restaurants and equipment |
1,492 |
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Operating earnings |
112,427 |
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Other income (expense): |
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Investment income |
1,650 |
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Interest expense |
7,456 |
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Other expense |
3,993 |
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Total other expense |
9,799 |
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Earnings before income taxes |
102,628 |
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Income taxes |
38,227 |
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Net earnings |
$64,401 |
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Basic net earnings per common share |
$1.74 |
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Diluted net earnings per common share |
$1.70 |
Use this financial statement to answer the following questions:
a. How much revenue did Applebees earn from food and drinks?
b. How much revenue did it earn from other operating activities?
c. How much revenue did it earn from nonoperating activities?
d. What amount of gross profit did Applebees earn? Express your answer both in dollars and as a percentage of total revenues.
e. How much expense did it incur for nonoperating activities?
f. Approximately how many shares of stock did Applebees have outstanding during the year?
g. How much operating income and net income did Applebees earn during the fiscal year? Express your answers both in dollars and as a percentage of total revenues.
h. Can the amount of cash Applebees received from its operating activities during the year be determined from the income statement? If so, what is that amount? If not, why not?
