Assignment 12-Case Study 9-4
Assignment 12- Case Study 9-4: Frisch’s Restaurants
Student Name
University
Financial Statement Analysis- ACT 87515
Date
Instructor
, Assignment 12-Case Study 9-4
Case Study: Family Style
Introduction
Chapter 9 Case study 9-4 of Financial Reporting and Analysis (Gibson, 2013) presents
the consolidated balance sheet of Frisch’s Restaurants, Inc. and Subsidiaries (in part) as of June
2, 2009 and June 1, 2010, together with the consolidated statement of earnings for the three
periods ended June 1, 2010, taken from the 2010 annual report of Frisch’s Restaurants, Inc.
According to its 2010 10-K, Frisch’s Restaurants, Inc., “Frisch’s” or “Company” is “a regional
company that operates full service family-style restaurants under the name Frisch’s Big Boy.
(Gibson, 2013, pg. 387). The excerpt from the balance sheet provides details about the
stockholder equity and retained earnings accounts that comprise the total net liabilities and
stockholders’ equity amounts reported on the balance sheet. The case study questions pertain to
certain types of analysis that are of particular interest to investors. These case study questions are
answered below, following a brief general analysis of the topics.
Analysis
Investors glean the information needed for decision making purposes by studying an
entity’s financial statements and accompanying notes and using the information to compute
various performance ratios; to make judgments about how efficiently a company is using its
assets, equity and borrowed funds; to identify trends to assist with deciding on whether or not to
investing their funds in a particular company.
Simply put, an investor wants to know about a company’s earnings, its profitability, the
bottom line. Earnings and revenue analysis provide insight into whether a company is growing
or not, its level expenses, how much its stock is worth, how much interest it is paying. Some of
Assignment 12- Case Study 9-4: Frisch’s Restaurants
Student Name
University
Financial Statement Analysis- ACT 87515
Date
Instructor
, Assignment 12-Case Study 9-4
Case Study: Family Style
Introduction
Chapter 9 Case study 9-4 of Financial Reporting and Analysis (Gibson, 2013) presents
the consolidated balance sheet of Frisch’s Restaurants, Inc. and Subsidiaries (in part) as of June
2, 2009 and June 1, 2010, together with the consolidated statement of earnings for the three
periods ended June 1, 2010, taken from the 2010 annual report of Frisch’s Restaurants, Inc.
According to its 2010 10-K, Frisch’s Restaurants, Inc., “Frisch’s” or “Company” is “a regional
company that operates full service family-style restaurants under the name Frisch’s Big Boy.
(Gibson, 2013, pg. 387). The excerpt from the balance sheet provides details about the
stockholder equity and retained earnings accounts that comprise the total net liabilities and
stockholders’ equity amounts reported on the balance sheet. The case study questions pertain to
certain types of analysis that are of particular interest to investors. These case study questions are
answered below, following a brief general analysis of the topics.
Analysis
Investors glean the information needed for decision making purposes by studying an
entity’s financial statements and accompanying notes and using the information to compute
various performance ratios; to make judgments about how efficiently a company is using its
assets, equity and borrowed funds; to identify trends to assist with deciding on whether or not to
investing their funds in a particular company.
Simply put, an investor wants to know about a company’s earnings, its profitability, the
bottom line. Earnings and revenue analysis provide insight into whether a company is growing
or not, its level expenses, how much its stock is worth, how much interest it is paying. Some of
