How am I to determine this answer if Chick fil A does not file a 10K ? 1)...

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Accounting

How am I to determinethis answer if Chick fil A does not file a 10K

?

1) Chick fil A mayexperience a decline in its Current Ratio if:

a. its adherence tobiblical principles increases Customer Goodwill.

b. its support offamily values compels it to enrich its future Employee Pension Planbenefits.

c. its closure onSundays reduces credit card Accounts Receivable.

d. its aggressivegrowth policy compels it to assume more long term mortgagedebt.

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2) Chick-fil-A mayexperience a decline in its Net Profit (or Net Income) Ratioif:

a. its closure onSundays reduces Revenue.

b. its popularity withthe evangelical Christian market increases Revenue.

c. its reliance onpart-time employees reduces Expenses.

d. its shift fromchicken to beef products increases Revenue.

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3) Chick-fil-A’sChristian beliefs:

a. have no significantimpact on any of its financial results.

b. may have asignificant impact on its profitability because of its closure onSundays.

c. have been abandonedin its quest to optimize its financial results.

d. prevent it fromcompeting directly with Shake Shack.

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4) Use appropriateanalytical conclusions about the two organizations.

Shake Shack 10K2018:

a. is in danger ofrunning short of resources to pay its debts next year.

b. has beenunprofitable for the past two years.

c. always producesmore than enough operating cash to fully cover its investingactivities each year.

d. appears to be afiscally sound firm.

Answer & Explanation Solved by verified expert
3.6 Ratings (279 Votes)
Part 1 Answer is option C c its closure on Sundays reduces credit card Accounts Receivable Current ratio is related to current assets and current liabilities It declines due to decrease in    See Answer
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