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APPLY YOUR KNOWLEDGE Serial Case bjective 5: Analyze contingent liabilities of a company in the restaurant industry) Note: This case is part of The Cheesecake Factory textbook serial case contained in every chapter in this Like many other large companies, The Cheesecake Fa legal actions pending against it at any given tim contingent liabi notes to its financial sta ctory Incorporated has several e. It must accrue for and/or disclose certain ilities, such as pending or possible legal actions, in its financial statements and tements. The necessary reporting depends on the specific circumstances of the situations and the company's attorneys' assessment of the potential outcomes ro follow are four hypothetical legal situations that might face The Cheesecake Factory Situation A: A former restaurant employee filed a class-action lawsuit alleging that The ecake Factory violated the local law when it required employees to purchase their work uniforms. Legal counsel has indicated that the case will probably be settled for $2,500 ituation B: A customer filed a lawsuit alleging that The Cheesecake Factory was egligent when she slipped and fell on a wet floor near the bar area in a Cheesecake Factory in Topeka, Kansas. Legal counsel has indicated that the company will most likely settle thi Situation C: A customer filed a lawsuit alleging that The Cheesecake Factory c s case, but counsel is unable to estimate the dollar amount of the settlement. emotional distress when her favorite dessert was out of stock for her birthday dinner wsuit is remote at the restaurant. Legal counsel has indicated that the chance of losing this la Situation D: A former restaurant hourly employee filed a class-action lawsuit for $200,000 alleging that The Cheesecake Factory violated the local law by failing to pay overtime. Legal counsel has stated that it is reasonably possible, but not probable, that The Cheesecake Factory could lose the lawsuit. Requirement 1. Desc ribe the accounting treatment for each of the contingent liabilities listed. Support you answers