Comparing Two Companies in the Same Industry: Chipotle and Panera Bread Refer to the financial information for Chipotle and Panera Bread reproduced at the back of the book for the information needed to answer the following questions.
Required
1. Locate the note in each company’s annual report included in its Form 10-K for the 2015 year in which it discusses revenue recognition. How does each company describe the point at which it recognizes revenue from customers? Are there any significant differences in the organizations’ revenue recognition policies?
2. What dollar amount does Chipotle report for accounts receivable on its most recent balance sheet? What percent of the company’s total current assets are comprised of accounts receivable? What is the dollar amount of Panera Bread’s trade accounts receivable on its most recent balance sheet? What percent of total current assets is comprised of accounts receivable? For which company does its accounts receivable constitute a higher percentage of its total current assets?
