The Cheesecake Factory Incorporated is publicly held and had more than 93 million common shares outstanding as of the end of the 2016 fiscal year. The company has preferred stock authorized but did not have any preferred stock issued. During fiscal year 2016, The Cheesecake Factory declared and paid cash dividends of $0.88 per share, totaling approximately $42.3 million. During the same year, it purchased 2.9 million shres of its own common stock at an approximate cost of $146.5 million. 1. What impact, if any, would the cash dividend have had on the company’s assets, liabilities and equity during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased) 2. What impact, if any, would the cash dividend have had on the company’s revenue and expenses during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased) 3. On which financial statement(s) would the cash dividend be listed for 2016?
The Cheesecake Factory Incorporated is publicly held and had more than 93 million common shares outstanding as of the end of the 2016 fiscal year. The company has preferred stock authorized but did not have any preferred stock issued. During fiscal year 2016, The Cheesecake Factory declared and paid cash dividends of $0.88 per share, totaling approximately $42.3 million. During the same year, it purchased 2.9 million shres of its own common stock at an approximate cost of $146.5 million. 1. What impact, if any, would the cash dividend have had on the company’s assets, liabilities and equity during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased) 2. What impact, if any, would the cash dividend have had on the company’s revenue and expenses during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased) 3. On which financial statement(s) would the cash dividend be listed for 2016?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Cheesecake Factory Incorporated is publicly held and had more than 93 million common shares outstanding as of the end of the 2016 fiscal year. The company has
During fiscal year 2016, The Cheesecake Factory declared and paid cash dividends of $0.88 per share, totaling approximately $42.3 million. During the same year, it purchased 2.9 million shres of its own common stock at an approximate cost of $146.5 million.
1. What impact, if any, would the cash dividend have had on the company’s assets, liabilities and equity during 2016? (Do not provide journal entries ) (name the account, account type and whether it increased or decreased)
2. What impact, if any, would the cash dividend have had on the company’s revenue and expenses during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased)
3. On which financial statement(s) would the cash dividend be listed for 2016?
4. What impact, if any, Would the purchase of common stock have had on the company’s assets, liabilities and equity during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased)
5. What impact, if any, would the common stock have had on the company’s revenue and expenses during 2016? (Do not provide journal entries) (name the account, account type and whether it increased or decreased)
6. On which financials statement(s) would the repurchase of the common stock be listed for 2016?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education