Auumse that in The Cheesecake Factory Incorporated NASDAQ: CAKE opened a new restaurant in an
upscale neighborhood of Pittsburgh, Pennsylvania. The new restaurant covers square feet and seats guests.
Rather than selling franchises, Cheesecake Factory owns and operates all of its US restaurants, which at last count
numbered more than It typically has a longterm lease for each restaurant location and depreciates the cost of
building a restaurant over the life of the lease.
iClick the icon to view the planning information.iClick the icon to view the building and
equipment information.
iClick the icon to view Form K excerpts related to property and equipment.
Assume that The Cheesecake Factory paid cash for all costs of building and equipping its new restaurant in Pittsburgh.
How will Cheesecake Factory's total assets be impacted by this event? Ignore the impact of depreciation when
answering this question.
A Total assets will not be impacted by this transaction
B Will increase total assets
C Will decrease total assets
D Not enough information given to determine impact on total assets
