Exercise 12-4 Chipotle Mexican Grill began with a single location in 1993 and now operates more than 1,700 restaurants. Adapted versions of the company\'s income statements (in $000s) are as follows: 2015 2014 Revenue $4,501,223 $4,108,269 Restaurant operating costs Food, beverage, and packaging Labor Occupancy Other operating costs General and administrative expenses Depreciation and amortization Pre-opening costs Loss on disposal of assets 1,503,835 1,420,994 1,045,726 904,407 262,412 230,868 514,963 434,244 250,214 273,897 110,474 15,609 6,976 3,737,634 3,397,469 710,800 3,503 769,867 714,303 294,265 268,929 $475,602 $445,374 130,368 16,922 13,194 Total operating expenses Income from operations Interest and other income (expense), net Income before income taxes Provision for income taxes 763,589 6,278 Net income Solution Common Size Income Statement: 2015 2014 Revenue 100.00% 100.00% Restaurant Operating cost Food Beverage and Packaging 33.41% 34.59% Labor 23.23% 22.01% Occupancy 5.83% 5.62% Other Operating cost 11.44% 10.57% General and Admin expense 5.56% 6.67% Depreciation and Amortization 2.90% 2.69% Pre-opening Cost 0.38% 0.38% Loss on Disposal of asset 0.29% 0.17% Total Operating cost 83.04% 82.70% Income from operations 16.96% 17.30% Interest and Other incomes 0.14% 0.09% Income Before Income tax 17.10% 17.39% Provision for Income tax 6.54% 6.55% Net Income 10.57% 10.84%.

1. Exercise 12-4 Chipotle Mexican Grill began with a single location in 1993 and now operates
more than 1,700 restaurants. Adapted versions of the company's income statements (in $000s)
are as follows: 2015 2014 Revenue $4,501,223 $4,108,269 Restaurant operating costs Food,
beverage, and packaging Labor Occupancy Other operating costs General and administrative
expenses Depreciation and amortization Pre-opening costs Loss on disposal of assets 1,503,835
1,420,994 1,045,726 904,407 262,412 230,868 514,963 434,244 250,214 273,897 110,474
15,609 6,976 3,737,634 3,397,469 710,800 3,503 769,867 714,303 294,265 268,929 $475,602
$445,374 130,368 16,922 13,194 Total operating expenses Income from operations Interest and
other income (expense), net Income before income taxes Provision for income taxes 763,589
6,278 Net income
Solution
Common Size Income Statement: 2015 2014 Revenue 100.00% 100.00% Restaurant
Operating cost Food Beverage and Packaging 33.41% 34.59% Labor 23.23% 22.01%
Occupancy 5.83% 5.62% Other Operating cost 11.44% 10.57% General and Admin expense
5.56% 6.67% Depreciation and Amortization 2.90% 2.69% Pre-opening Cost 0.38% 0.38%
Loss on Disposal of asset 0.29% 0.17% Total Operating cost 83.04% 82.70% Income from
operations 16.96% 17.30% Interest and Other incomes 0.14% 0.09% Income Before Income
tax 17.10% 17.39% Provision for Income tax 6.54% 6.55% Net Income 10.57% 10.84%