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Module 2: reformulation company: chipotle. Matt Ramirez. Calculation of Net enterprise assets ( nea ). Enterprise assets ( ea ). Total Ea calculation. Enterprise liabilities (el). Enterprise liabilities (continued). Total el calculation. Nea calculation.
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Module 2: reformulationcompany: chipotle Matt Ramirez
assets • Income tax receivable: not a common account, no footnotes- assume it is enterprise activity (considered “other assets”), also missing in 2011 • Investments and long term investments: treasury notes and certificates of deposit (from footnotes)- ultimately deemed a financing activity to create return on investments but not directly related to operations/enterprise of the company as a whole, started in 2011 • “Other Assets”: Need to look deeper in footnotes
liabilities • Deemed landlord financing: “deemed continuing involvement with the buyer-lessor due to fixed price renewal options, which results in the transaction being recorded under the financing method…assets remain on the balance sheet and the proceeds from the transactions are recorded as a financing liability” (from footnotes)- deemed a financing activity based on accounting method and nature of transactions/still not sure • Accrued payroll/benefits: ultimately decided that payroll directly affects employees who affect operations • Income tax payable: only in 2011?
Issues and uncertainties of certain items (income statement)
Income statement uncertainties • “Other operating costs”: Enterprise activity, but may dig deeper later and find certain costs not attributable • Interest: Expense in 2011, but income in 2010 and 2012? • Foreign currency translation adjustments: Deemed enterprise due to global growth of Chipotle, but are they related to investments (and possibly financial instead of enterprise)?