DECEMBER 31, DECEMBER 29,
1995 1996
Boston Market Financed Area Developers:
– —————————————
Total number of financed area developers……………………. 15 14
Total number of financed area developer stores open………… 627 841
Balance sheet data:
Total gross assets………………………………….. $513,926 $ 640,534
Total debt:
To the Company…………………………………….. 372,071 555,105
Statement of operations data:
Gross revenue…………………………………… $ 491,341 $ 865,082
Income (loss) from continuing operations…………… (148,338) (156,505)
Statement of cash flows data:
Cash flows from (used in) operating activities……… $ (76,926) $(128,819)
Cash flows from (used in) investing activities……… (193,100) (82,307)
Strategy for Information goods
•information has high fixed cost, low
–personalized pricing
Strategy for Technology goods
•exist in systems
–collaboration more important
•network externalities
Purpose of Accounting Analysis
•Evaluate how well accounting reflects the
underlying economics of the business.
Factors Affecting Acctg Quality
•Restrictive nature of GAAP
•Intentional biases introduced by
management
Some Red Flags
•using different accounting methods or
estimates than the industry
•unexplained changes in
•poor overall disclosure
Jackson 5 — ABC (as easy as 123)