Kansas Pizza Pantry opened its first restaurant in Lawrence, Kansas in 1985. Almost immediately after...

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Accounting

Kansas Pizza Pantry opened its first restaurant in Lawrence, Kansas in 1985. Almost immediately after the first location opened, it expanded from Kansas Pizza Pantry to more than 250 locations in more than 30 states and 11 countries. Kansas Pizza Pantry completed an initial public offering in August 2000. Several years ago, Golden Gate Capital completed the acquisition of Kansas Pizza Pantry and, as a result of the acquisition, the company's common stock is no longer publicly traded.

KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Statements of Operations (amounts in thousands, except for per share data)
Year 3 Year 2 Year 1
Revenues:
Restaurant sales $ 633,606 $ 652,785 $ 665,616
Royalties from licensing agreement 6,842 8,339 6,580
Domestic franchise revenues 4,420 2,984 2,757
International franchise revenues 3,303 2,198 2,121
Total revenues 648,171 666,306 677,074
Costs and expenses:
Food, beverage and paper supplies 149,932 155,381 165,526
Labor 237,433 247,950 247,276
Direct operating and occupancy 143,020 142,573 140,367
Cost of sales 530,385 545,904 553,169
General and administrative 50,851 51,091 51,642
Depreciation and amortization 37,186 40,361 40,299
Pre-opening costs 3,389 1,903 4,478
Loss on impairment of property and equipment 19,002 23,541 13,336
Store closure costs 1,768 569 1,033
Litigation, settlement and other costs 8,939 1,669 736
Total costs and expenses 651,520 665,038 664,693
Operating (loss)/income (6,289 ) 3,308 12,381
Interest expense, net (28 ) (782) (1,324)
(Loss)/income before income tax (benefit)/provision (6,317 ) 2,526 11,057
Income tax (benefit)/provision (5,119 ) (2,151) 2,395
Net (loss)/income $ (1,198 ) $ 4,677 $ 8,662
Net (loss)/income per common share:
Basic $ (0.08 ) $ 0.19 $ 0.34
Diluted $ (0.08 ) $ 0.19 $ 0.34
Weighted average shares used in calculating net (loss)/income per common share:
Basic 24,788 24,664 25,193
Diluted 24,788 24,443 25,211

KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except for share data)
Year 3 Year 2
Assets
Current assets:
Cash and cash equivalents $ 13,112 $ 24,184
Other receivables 13,094 13,141
Inventories 6,547 6,757
Current deferred tax asset, net 8,765 7,676
Prepaid rent 321 6,157
Other prepaid expenses 2,878 2,331
Total current assets 44,717 60,246
Property and equipment, net 242,646 256,616
Noncurrent deferred tax asset, net 22,701 25,611
Goodwill 4,742 4,922
Other intangibles, net 5,137 5,014
Other assets 8,913 7,509
Total assets $ 328,856 $ 359,918
Liabilities and stockholders equity
Current liabilities:
Accounts payable $ 17,795 $ 11,863
Accrued compensation and benefits 24,053 23,801
Accrued rent 21,324 20,487
Deferred rent credits 4,418 4,345
Other accrued liabilities 14,290 12,115
Gift card liability 14,937 21,240
Store closure reserve 84 356
Total current liabilities 96,901 94,207
Long-term debt --- 22,900
Other liabilities 10,006 8,928
Deferred rent credits, net of current portion 33,777 33,078
Income taxes payable, net of current portion 331 10,325
Commitments and contingencies - -
Stockholders equity:
Common stock$0.01 par value, 80,060,000 shares authorized, 27,600,000 and 27,200,000 shares issued and outstanding at end of Year 3, and Year 2, respectively 276 272
Additional paid-in capital 173,563 174,600
Retained earnings 14,002 15,608
Total stockholders equity 187,841 190,480
Total liabilities and stockholders equity $ 328,856 $ 359,918

Required: 1. Compute the following ratios for Year 3 using information from the company annual report that was issued before Kansas Pizza Pantry was acquired. Assume a market price per share of $1.28. (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Negative amounts should be indicated by a minus sign.)

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Please show work so I can see how arrived at answer.

z.. Return on equity b. Net profit margin c. Inventory turnover d. Current ratio e. Quick ratio f. Debt to equity ratio g. Price/earnings ratio

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