Chapter 14 Financial Statement Analysis 681Facility lease expense $ 126.6
Utilities and other 113.0
Total cost of operations $ 745.30
General and administrative expenses 51.5
Depreciation and amortization 67.1
Other expenses 38.5
Total costs and expenses $ 902.4
Operating income $ 121.8
Other income (expense)
Interest expense $ 42.7
Other expense 7.6
Income before income taxes $ 71.5
Income taxes 27.0
Net income $ 44.5- Determine the following:
a. DuPont formula
b. Leverage formula
c. Total operating profit as a percent of sales
d. Concession gross profit as a percent of concession sales
e. Number of times interest charges earned - Evaluate Cinemark’s financial performance, using the calculations in (1).
Domino’s Inc.andPapa John’s International Inc.are the two largest pizza delivery companies
in the United States. Both companies have both company-owned and franchise store locations,
featuring a delivery-oriented store design. Franchised restaurants are owned by other entities
that pay fees to the franchiser based upon franchise contract provisions. The accounts receivable
are associated with these fees. Comparative condensed income statements for a recent fiscal year
for both companies are as follows:Case 14-5
Comprehensive DuPont and
asset efficiency ratios
Domino’s Inc. and Papa John’s
Comparative Income Statements
(in millions)Domino’s Papa John’s
Revenues $1,446.5 $942.4
Cost of goods sold 1,092.8 756.6
Gross profit $ 353.7 $185.8
General and administrative expenses 182.3 144.0
Income from operations $ 171.4 $ 41.8
Other income and expenses (71.4) (4.6)
Income before taxes $ 100.0 $ 37.2
Income tax expense 37.8 13.9
Net income $ 62.2 $ 23.3Average balances from comparative balance sheets for both companies were as follows for a
recent year (in millions):Domino’s Papa John’s
Average total assets $449.7 $360.9
Average accounts receivable 68.9 21.5
Average inventory 20.5 20.1
Average fixed assets 132.0 200.5