, FIN 320 Module Two Journal Guidelines and Ru
ic
Overview
In Project Two, you'll analyze and evaluate a business's financial health. You'll also recommend financing options that improve the company’s
financial health. Use the Project Two Business Options List to choose the business that you'll examine in Project Two. Then use Mergent
Online to locate the most recent quarterly financial statements for the business: the balance sheet, the income statement, and the cash flow
statement.
To succeed in your Project Two assignment, you will need to understand the role of financial statements and how they help a business
determine its financial health. You will also need to explain why cash flow management is important to the financial health of a business.
Directions
Write a
ief journal that introduces the business you chose for your Project Two assignment.
Specifically, you must address the following ru
ic criteria:
+ Business Selection: Describe the business you chose, including the business name and what the business offers consumers.
+ Financial Statements: Using Mergent Online, download and submit a copy of the balance sheet, the income statement, and the cash flow
statement from the most recent fiscal quarter for the business you chose.
+ Financial Statement Role: Explain why financial statements are important to a business and how they help businesses determine thei
financial health.
+ Cash Flow Management: Explain why cash flow management is important to a business and its financial health. Use a financial news story
from the past two months as an example to support your claims.
What to Submit
Your journal submission should be a 3- to 4-paragraph Word document with 12-point Times New Roman font, double spacing, and one-inch
margins. Any sources should be cited according to APA style. Also submit the Excel files for your chosen business's balance sheet, income
statement, and cash flow statement from Mergent Online.
Untitled Spreadsheet
asreported
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Chipotle Mexican Grill Inc (NYS: CMG)
Exchange rate used is that of the Year End reported date
As Reported Quarterly Balance Sheet
Report Date 03/31/2023 09/30/2022 06/30/2022 03/31/2022 09/30/2021 06/30/2021 03/31/2021
1st Quarter 3rd Quarter 2nd Quarter 1st Quarter 3rd Quarter 2nd Quarter 1st Quarte
Cu
ency USD USD USD USD USD USD USD
Audit Status Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Consolidated Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Cash & cash equivalents 409727 366623 520933 615863 721109 668269 694776
Accounts receivable, net 65869 71276 83636 89295 76099 75697 68449
Inventory 34599 33752 29456 29852 28450 25159 24304
Prepaid expenses & other cu
ent assets 98389 76439 73716 70403 72821 71613 61615
Income tax receivable - 112064 97874 50701 318593 284612 244122
Investments 652858 417278 240684 240379 301534 322460 363585
Total cu
ent assets 1261442 1077432 1046299 1096493 1518606 1447810 1456851
Leasehold improvements, property & equipment, net 1981329 1871623 1813348 1779521 1719224 1666184 1613670
Long term investments 368023 442620 359911 333088 188344 150814 110928
Restricted cash 25133 30974 30895 30872 27891 27877 27863
Operating lease assets 3334277 3309051 3209934 3147061 3094045 2945912 2858345
Other assets 61229 63798 63010 58283 57518 59918 59463
Goodwill 21939 21939 21939 21939 21939 21939 21939
Total assets 7053372 6817437 6545336 6467257 6627567 6320454 6149059
Accounts payable 182606 167842 158581 168905 171712 140251 147417
Accrued payroll & benefits 116465 128495 161052 172454 190912 225104 221677
Accrued liabilities 160436 156455 148614 136655 153233 143469 145627
Unearned revenue 157898 133118 132446 132421 120423 113016 110197
Cu
ent operating lease liabilities 239029 231947 230930 223303 214684 213646 209086
Income tax payable 37658 - - - - - -
Total cu
ent liabilities 894092 817857 831623 833738 850964 835486 834004
Long-term operating lease liabilities 3532566 3497221 3393423 3331319 3274875 3134555 3040176
Defe
ed income tax liabilities 98137 133255 126239 127729 148395 133510 135929
Other liabilities 46892 41723 39852 40511 42425 42745 41419
Total liabilities 4571687 4490056 4391137 4333297 4316659 4146296 4051528
Common stock 374 373 373 373 371 370 369
Additional paid-in capital 1849683 1807938 1782303 1753328 1690806 1654195 1606501
Treasury stock, at cost 4480833 4076555 3969221 3702023 3170798 3067458 2908111
Accumulated other comprehensive income (loss) -7431 -8896 -6639 -5159 -5143 -4187 -4492
Retained earnings (accumulated deficit) 5119892 4604521 4347383 4087441 3795672 3591238 3403264
Total shareholders' equity 2481685 2327381 2154199 2133960 2310908 2174158 2097531
Untitled Spreadsheet
asreported
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it
Chipotle Mexican Grill Inc (NYS: CMG)
Exchange rate used is that of the Year End reported date
As Reported Quarterly Cash Flow
Report Date 03/31/2023 09/30/2022 06/30/2022 03/31/2022 09/30/2021 06/30/2021 03/31/2021
1st Quarter 3rd Quarter 2nd Quarter 1st Quarter 3rd Quarter 2nd Quarter 1st Quarte
Cu
ency USD USD USD USD USD USD USD
Audit Status Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Consolidated Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Net income (loss) 291644 675374 418236 158294 519509 315075 127101
Depreciation & amortization 76585 212814 141398 71665 188395 125204 63122
Amortization of operating lease assets - - - - - 105485 49269
Defe
ed income tax provision (benefit) -486 -8567 -15537 -14024 -1024 -15884 -13482
Impairment, closure costs, & asset disposals 8152 15127 8851 4265 12483 8235 4937
Provision for credit losses 500 -969 -876 -918 733 -220 -275
Stock-based compensation expense 20084 77371 52221 23590 138741 102680 55390
Other adjustments -2810 -13045 -11909 -998 2534 2467 2180
Accounts receivable 39659 22891 12353 10394 21882 37286 32175
Inventory 1086 -1056 3320 2970 -1996 1309 2148
Prepaid expenses & other cu
ent assets -14569 -3169 948 5920 -19343 -18186 -8756
Operating lease assets 59135 171464 112505 55125 151628 - -
Other assets 3277 -1537 -3014 -1132 1901 117 -186
Accounts payable -2732 10774 -2972 15702 28712 12525 19446
Accrued payroll & benefits -53428 -32861 -583 10438 -13193 21068 18188
Accrued liabilities 17009 -16562 -22293 -31151 -7407 -20102 -17869
Unearned revenue -22653 -18141 -20062 -21604 -2978 -11487 -15606
Income tax payable or receivable 85400 -18070 -3832 43367 -35850 -1851 38640
Operating lease liabilities -51584 -153200 -100024 -49596 -141540 -101818 -50902
Other long-term liabilities 767 2968 958 595 474 955 453
Net cash flows from operating activities 455036 921606 569688 282902 843661 562858 305973
Purchases of leasehold improvements, property & equipment -120369 -335518 -196495 -96162 -320569 -212123 -86619
Purchases of investments -214819 -513813 -195242 -118827 -288899 -190920 -90477
Maturities of investments 99639 202997 142540 81923 243441 162045 60593
Proceeds from sale of equipment - - - - 2885 2885 -
Net cash flows from investing activities -235549 -646334 -249197 -133066 -363142 -238113 -116503
Acquisition of treasury stock -126709 -629775 -521910 -263308 -300733 -203151 -57229
Tax withholding on stock-based compensation awards -67185 -92374 -91905 -85811 -63492 -58860 -44810
Other financing activities 11 -586 -588 -359 -2342 -2208 -221
Net cash flows from financing activities -193883 -722735 -614403 -349478 -366567 -264219 -102260
Effect of exchange rate changes on cash, cash equivalents & restricted cash 290 -1170 -490 147 -788 -216 -407
Net change in cash, cash equivalents, & restricted cash 25894 -448633 -294402 -199495 113164 60310 86803
Cash, cash equivalents, & restricted cash at beginning of period 408966 846230 846230 846230 635836 635836 635836
Cash, cash equivalents, & restricted cash at end of period 434860 397597 551828 646735 749000 696146 722639
Income taxes paid -245 227452 139177 2291 163069 108247 6909
Untitled Spreadsheet
asreported
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it
Chipotle Mexican Grill Inc (NYS: CMG)
Exchange rate used is that of the Year End reported date
As Reported Quarterly Income Statement
Report Date 03/31/2023 09/30/2022 06/30/2022 03/31/2022 09/30/2021 06/30/2021 03/31/2021
1st Quarter 3rd Quarter 2nd Quarter 1st Quarter 3rd Quarter 2nd Quarter 1st Quarte
Cu
ency USD USD USD USD USD USD USD
Audit Status Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Consolidated Yes Yes Yes Yes Yes Yes Yes
Scale Thousands Thousands Thousands Thousands Thousands Thousands Thousands
Food & beverage revenue 2351009 2202336 2192802 1998956 1932409 1869365 1715990
Delivery service revenue 17571 17839 20537 21583 19906 23173 25585
Total revenue 2368580 2220175 2213339 2020539 1952315 1892538 1741575
Restaurant operating costs - food, beverage & packaging 692559 662540 673928 626926 591332 574478 522671
Restaurant operating costs - labor 583794 557178 549926 531940 502757 464506 433669
Restaurant operating costs - occupancy 121931 115826 113919 112032 104223 103430 101769
Restaurant operating costs - other operating costs 363206 322085 317481 330695 294650 287242 294710
General & administrative expenses 148340 140896 140820 147402 145930 146044 155103
Depreciation & amortization expenses 76585 71416 69733 71665 63191 62082 63122
Pre-opening costs 6198 7618 5253 5348 5894 4965 3421
Impairment, closure costs, & asset disposals 8361 6363 4681 4310 4658 4266 5668
Total operating expenses 2000974 1883922 1875741 1830318 1712635 1647013 1580133
Income (loss) from operations 367606 336253 337598 190221 239680 245525 161442
Interest & other income (expense), net 8949 3712 10572 -213 -126 851 -2168
Income (loss) before income taxes 376555 339965 348170 190008 239554 246376 159274
Provision (benefit) for income taxes 84911 82827 88228 31714 35120 58402 32173
Net income (loss) 291644 257138 259942 158294 204434 187974 127101
Weighted average shares outstanding - basic 27624 27773 27905 28043 28150 28134 28125
Weighted average shares outstanding - diluted 27788 27956 28092 28301 28475 28501 28582
Year end shares outstanding 27601 27751 27804 27984 28155 28098 28159
Net earnings (loss) per share - basic 10.56 9.26 9.32 5.64 7.26 6.68 4.52
Net earnings (loss) per share - diluted 10.5 9.2 9.25 5.59 7.18 6.6 4.45
FIN 320 Project Two Business Options List
Choose one of the following businesses to use in Project Two. You’ll also use this business in the Module
Two Journal and the Project Two Milestone.
Business Options
• Johnson & Johnson (JNJ)
• Disney (DIS)
• Meta Platforms Inc (META)
• Kellogg (K)
• Tesla (TSLA)
• Microsoft (MSFT)
• Chipotle Mexican Grill (CMG)
FIN 320 Project Two Business Options List
Business Options