21. Calculate the acid-test (quick) ratio for the past two years. Did the acid-test ratio improve or weaken in the more recent year?

22. Review the balance sheet and other important financial statements. Based on this information, how would you rate the bankruptcy risk of your company?

26. Has your firm issued any bonds over the last two years (Use the footnote on Debt)?

CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Fiscal Year 2019 2018 2017 $ 94.437 $ $ 121.371 17.032 135,332 6,759 2.690 91.747 104.339 128,573 59.422 67,398 55.181 1.983 862 121 3.121 2.803 3.487 2.757 23,551 (113) 4.100 8.074 (2,031) 25,352 9.146 2.324 (4.232) (16,074) 10.637 1.484 4.215 (4.475) (1,366) (6.244) 5,414 (2.280) (46.164) 1.627 (2.424) (38,034) 2.891 2.505 1.815 3,504 24.220 (1.868) 82 1.587 1.839 8,728 12.718 4.524 (9.432) 4.890 (38.329) (5.467) (14.893) (16,426 104,055 (3.359) (16,654) (5,363) (7,505) (6.194) (10,593) (9,355) 168.405 (11,997) 133.689 Cash flows from operating activities: Net earnings Earnings from discontinued operations Earnings from continuing operations Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Franchise tenant improvement allowance amortization and other Amortization of debt issuance costs Loss on debt extinguishment Loss on interest rate swap termination Excess tax benefits from share-based compensation arrangements Deferred income taxes Share-based compensation expense Pension and postretirement expense Gains on cash surrender value of company-owned life insurance Gains on the sale of company-operated restaurants (Gains) losses on the disposition of property and equipment Impairment charges and other Changes in assets and liabilities, excluding acquisitions and dispositions: Accounts and other receivables Inventories Prepaid expenses and other current assets Accounts payable Accrued liabilities Pension and postretirement contributions Franchise tenant improvement allowance disbursements Other Cash flows provided by operating activities Cash flows from investing activities: Purchases of property and equipment Proceeds from the sale and leaseback of assets Proceeds from the sale of company-operated restaurants Collections on notes receivable Proceeds from the sale of property and equipment Other Cash flows (used in provided by investing activities Cash flows from financing activities: Borrowings on revolving credit facilities Repayments of borrowings on revolving credit facilities Proceeds from issuance of debt Principal repayments on debt Debt issuance costs Payments related to termination of interest rate swaps Dividends paid on common stock Proceeds from issuance of common stock Repurchases of common stock Excess tax benefits from share-based compensation arrangements Payroll tax payments for equity award issuances Change in book overdraft Cash flows used in financing activities Cash flows provided by (used in continuing operations Net cash provided by operating activities of discontinued operations Net cash provided by (used in) investing activities of discontinued operations Net cash used in financing activities of discontinued operations Net cash provided by discontinued operations Effect of exchange rate changes on cash Cash and restricted cash at beginning of year Cash and restricted cash at end of year (47,649) 4.447 (37.842) 9,336 1.280 26.486 (38,970) 6,057 99,591 1,500 2.921 54.453 16.759 9,714 1.630 (13,819) 10.259 2.969 (3,729) 65.661 67.370 757.100 747.900 (533,300) (523,700) (57.266) 229,798 (960.220) 1,300,000 (337,150) (34,122) (23,551) (41,179) 1.231 (137,654) (304,607) (1,366) (45.412) 7.959 (325.634) (48,925) 5.165 (334,361) 4.232 (9,240) 2.151 (223,644) (22,585) (2.883) (7,719) (2.150) (445,529) (5,730) 148.856 (275.813) 4.823 266.125 11111 47.388 (34.031) (138) 13.219 (78) 270.870 6 (22) 2,705 151,561 7,642 2.705 17.030 7.642 $ See accompanying notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) Fiscal Year 2019 2018 2017 $ $ 448.058 $ 715.921 Revenues: Company restaurant sales Franchise rental revenues Franchise royalties and other Franchise contributions for advertising and other services 336,807 272.815 169.811 259.047 162.585 231,578 149.792 170.674 950.107 869,690 1,097.291 206.653 97,699 100.158 128.947 129.089 71.803 211.611 124.367 50.613 248.470 542.631 Operating costs and expenses, net: Company restaurant costs (excluding depreciation and amortization): Food and packaging Payroll and employee benefits Occupancy and other Total company restaurant costs Franchise occupancy expenses (excluding depreciation and amortization) Franchise support and other costs Franchise advertising and other services expenses Selling, general, and administrative expenses Depreciation and amortization Impairment and other charges, net Gains on the sale of company-operated restaurants 329.839 158,319 166.584 140,623 11,593 8.811 12.110 178,093 76.357 104.816 117.280 55.181 59.422 67.398 12.455 (1.366) 747,884 18.418 (46,164) 636.243 13.169 (38.034) 851,878 202.223 233,447 245,413 3.360 1.484 1.833 84.967 Earnings from operations Other pension and post-retirement expenses, net Interest expense, net Earnings from continuing operations and before income taxes Income taxes Earnings from continuing operations Earnings from discontinued operations, net of income taxes Net earnings 115,772 24.025 45,547 186,067 81,728 38,148 203,905 75,332 91,747 104.339 17,032 121.371 128,573 6,759 2.690 $ 94,437 $ $ 135,332 S 3.55 $ 3.66 $ 4.20 0.10 0.60 0.22 $ 3.66 4.26 $ 4.42 Net earnings per share basic: Earnings from continuing operations Earnings from discontinued operations Net earnings per share (1) Net earnings per share - diluted: Earnings from continuing operations Earnings from discontinued operations Net earnings per share (1) $ 3.52 $ 3.62 $ 4.16 0.10 0.59 0.22 $ 3.62 4.21 S 4.38 Cash dividends declared per common share $ 1.60 $ 1.60 $ 1.60 (1) Earnings per share may not add due to rounding. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) September 29, 2019 September 30, 2018 ASSETS Current assets: Cash $ S 2,705 Restricted cash Accounts and other receivables, net Inventories Prepaid expenses Current assets held for sale 125,536 26.025 45,235 1.776 57,422 1,858 9.015 14,443 13,947 16.823 2.718 Other current assets 4,598 Total current assets 227,128 94,973 116,070 Property and equipment, at cost: Land Buildings Restaurant and other equipment 105,155 934,360 927,337 129,701 125,176 7,658 Construction in progress 20.815 1,176.241 (784,307) 391.934 1.190,031 (770,362) 419,669 Less accumulated depreciation and amortization Property and equipment, net Other assets: Intangible assets, net Goodwill Deferred tax assets 425 600 46.749 Other assets, net Total other assets 46.747 85.564 206.685 339,421 958,483 62,140 199,266 308,755 823,397 $ $ LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: $ 774 $ 31,828 37,066 44,970 106,922 120,083 157,923 183,720 1.037.927 1.274,374 263,770 1,538,144 193,449 1.231,376 Current maturities of long-term debt Accounts payable Accrued liabilities Total current liabilities Long-term liabilities: Long-term debt, net of current maturities Other long-term liabilities Total long-term liabilities Stockholders' deficit: Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued Common stock $0.01 par value, 175,000,000 shares authorized, 82,159,002 and 82,061,661 issued, respectively Capital in excess of par value Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 57,760,573 and 56,325,632 shares, respectively Total stockholders' deficit 822 821 480.322 470.826 1,577,034 (140,006) (2,655,756) (737,584) 958,483 1,561,353 (94,260) (2,530,439) (591,699) 823,397 $ CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Fiscal Year 2019 2018 2017 $ 94.437 $ $ 121.371 17.032 135,332 6,759 2.690 91.747 104.339 128,573 59.422 67,398 55.181 1.983 862 121 3.121 2.803 3.487 2.757 23,551 (113) 4.100 8.074 (2,031) 25,352 9.146 2.324 (4.232) (16,074) 10.637 1.484 4.215 (4.475) (1,366) (6.244) 5,414 (2.280) (46.164) 1.627 (2.424) (38,034) 2.891 2.505 1.815 3,504 24.220 (1.868) 82 1.587 1.839 8,728 12.718 4.524 (9.432) 4.890 (38.329) (5.467) (14.893) (16,426 104,055 (3.359) (16,654) (5,363) (7,505) (6.194) (10,593) (9,355) 168.405 (11,997) 133.689 Cash flows from operating activities: Net earnings Earnings from discontinued operations Earnings from continuing operations Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Franchise tenant improvement allowance amortization and other Amortization of debt issuance costs Loss on debt extinguishment Loss on interest rate swap termination Excess tax benefits from share-based compensation arrangements Deferred income taxes Share-based compensation expense Pension and postretirement expense Gains on cash surrender value of company-owned life insurance Gains on the sale of company-operated restaurants (Gains) losses on the disposition of property and equipment Impairment charges and other Changes in assets and liabilities, excluding acquisitions and dispositions: Accounts and other receivables Inventories Prepaid expenses and other current assets Accounts payable Accrued liabilities Pension and postretirement contributions Franchise tenant improvement allowance disbursements Other Cash flows provided by operating activities Cash flows from investing activities: Purchases of property and equipment Proceeds from the sale and leaseback of assets Proceeds from the sale of company-operated restaurants Collections on notes receivable Proceeds from the sale of property and equipment Other Cash flows (used in provided by investing activities Cash flows from financing activities: Borrowings on revolving credit facilities Repayments of borrowings on revolving credit facilities Proceeds from issuance of debt Principal repayments on debt Debt issuance costs Payments related to termination of interest rate swaps Dividends paid on common stock Proceeds from issuance of common stock Repurchases of common stock Excess tax benefits from share-based compensation arrangements Payroll tax payments for equity award issuances Change in book overdraft Cash flows used in financing activities Cash flows provided by (used in continuing operations Net cash provided by operating activities of discontinued operations Net cash provided by (used in) investing activities of discontinued operations Net cash used in financing activities of discontinued operations Net cash provided by discontinued operations Effect of exchange rate changes on cash Cash and restricted cash at beginning of year Cash and restricted cash at end of year (47,649) 4.447 (37.842) 9,336 1.280 26.486 (38,970) 6,057 99,591 1,500 2.921 54.453 16.759 9,714 1.630 (13,819) 10.259 2.969 (3,729) 65.661 67.370 757.100 747.900 (533,300) (523,700) (57.266) 229,798 (960.220) 1,300,000 (337,150) (34,122) (23,551) (41,179) 1.231 (137,654) (304,607) (1,366) (45.412) 7.959 (325.634) (48,925) 5.165 (334,361) 4.232 (9,240) 2.151 (223,644) (22,585) (2.883) (7,719) (2.150) (445,529) (5,730) 148.856 (275.813) 4.823 266.125 11111 47.388 (34.031) (138) 13.219 (78) 270.870 6 (22) 2,705 151,561 7,642 2.705 17.030 7.642 $ See accompanying notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) Fiscal Year 2019 2018 2017 $ $ 448.058 $ 715.921 Revenues: Company restaurant sales Franchise rental revenues Franchise royalties and other Franchise contributions for advertising and other services 336,807 272.815 169.811 259.047 162.585 231,578 149.792 170.674 950.107 869,690 1,097.291 206.653 97,699 100.158 128.947 129.089 71.803 211.611 124.367 50.613 248.470 542.631 Operating costs and expenses, net: Company restaurant costs (excluding depreciation and amortization): Food and packaging Payroll and employee benefits Occupancy and other Total company restaurant costs Franchise occupancy expenses (excluding depreciation and amortization) Franchise support and other costs Franchise advertising and other services expenses Selling, general, and administrative expenses Depreciation and amortization Impairment and other charges, net Gains on the sale of company-operated restaurants 329.839 158,319 166.584 140,623 11,593 8.811 12.110 178,093 76.357 104.816 117.280 55.181 59.422 67.398 12.455 (1.366) 747,884 18.418 (46,164) 636.243 13.169 (38.034) 851,878 202.223 233,447 245,413 3.360 1.484 1.833 84.967 Earnings from operations Other pension and post-retirement expenses, net Interest expense, net Earnings from continuing operations and before income taxes Income taxes Earnings from continuing operations Earnings from discontinued operations, net of income taxes Net earnings 115,772 24.025 45,547 186,067 81,728 38,148 203,905 75,332 91,747 104.339 17,032 121.371 128,573 6,759 2.690 $ 94,437 $ $ 135,332 S 3.55 $ 3.66 $ 4.20 0.10 0.60 0.22 $ 3.66 4.26 $ 4.42 Net earnings per share basic: Earnings from continuing operations Earnings from discontinued operations Net earnings per share (1) Net earnings per share - diluted: Earnings from continuing operations Earnings from discontinued operations Net earnings per share (1) $ 3.52 $ 3.62 $ 4.16 0.10 0.59 0.22 $ 3.62 4.21 S 4.38 Cash dividends declared per common share $ 1.60 $ 1.60 $ 1.60 (1) Earnings per share may not add due to rounding. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) September 29, 2019 September 30, 2018 ASSETS Current assets: Cash $ S 2,705 Restricted cash Accounts and other receivables, net Inventories Prepaid expenses Current assets held for sale 125,536 26.025 45,235 1.776 57,422 1,858 9.015 14,443 13,947 16.823 2.718 Other current assets 4,598 Total current assets 227,128 94,973 116,070 Property and equipment, at cost: Land Buildings Restaurant and other equipment 105,155 934,360 927,337 129,701 125,176 7,658 Construction in progress 20.815 1,176.241 (784,307) 391.934 1.190,031 (770,362) 419,669 Less accumulated depreciation and amortization Property and equipment, net Other assets: Intangible assets, net Goodwill Deferred tax assets 425 600 46.749 Other assets, net Total other assets 46.747 85.564 206.685 339,421 958,483 62,140 199,266 308,755 823,397 $ $ LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: $ 774 $ 31,828 37,066 44,970 106,922 120,083 157,923 183,720 1.037.927 1.274,374 263,770 1,538,144 193,449 1.231,376 Current maturities of long-term debt Accounts payable Accrued liabilities Total current liabilities Long-term liabilities: Long-term debt, net of current maturities Other long-term liabilities Total long-term liabilities Stockholders' deficit: Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued Common stock $0.01 par value, 175,000,000 shares authorized, 82,159,002 and 82,061,661 issued, respectively Capital in excess of par value Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 57,760,573 and 56,325,632 shares, respectively Total stockholders' deficit 822 821 480.322 470.826 1,577,034 (140,006) (2,655,756) (737,584) 958,483 1,561,353 (94,260) (2,530,439) (591,699) 823,397 $