which earnings number would analysts put more emphasis on income from continuing ope 642335

FAMILY RESTAURANT

CBRL GROUP, INC* CONSOLIDATED STATEMENT OF INCOME (In thousands, except share data)
	Fiscal years ended
	August 1, 2008	August 3, 2007	July 28, 2006
Total revenue	$2,384,521	$2,351,576	$2,219,475
Cost of goods sold	773,757	744,275	706,095
Gross profit	1,610,764	1,607,301	1,513,380
Labor and other related expenses	909,546	892,839	832,943
Impairment and store closing charges	877	—	5,369
Other store operating expenses	422,293	410,131	384,442
Store operating income	278,048	304,331	290,626
General and administrative expenses	127,273	136,186	128,830
Operating income	150,775	168,145	161,796
Interest expense	57,445	59,438	22,205
Interest income	185	7,774	764
Income before income taxes	93,515	116,481	140,355
Provision for income taxes	28,212	40,498	44,854
Income from continuing operations	65,303	75,983	95,501
Income from discontinued operations, net of tax	250	86,082	20,790
Net income	$65,553	$162,065	$116,291
Basic net income per share:
Income from continuing operations	$2.87	$2.75	$2.23
Income from discontinued operations, net of tax	0.01	3.11	0.48
Net income per share	$2.88	$5.86	$2.71
Diluted net income per share:
Income from continuing operations	$2.79	$2.52	$2.07
Income from discontinued operations, net of tax	0.01	2.71	0.43
Net income per share	$2.80	$5.23	$2.50
Basic weighted average shares outstanding	22,782,608	27,643,098	42,917,319
Diluted weighted average shares outstanding	23,406,044	31,756,582	48,044,440

CBRL GROUP, INC CONSOLIDATED BALANCE SHEET (In thousands, except share data)
	August 1, 2008	August 3, 2007
ASSETS
Current Assets:
Cash and cash equivalents	$11,978	$14,248
Property held for sale	3,248	4,676
Accounts receivable	13,484	11,759
Income taxes receivable	6,919	—
Inventories	155,954	144,416
Prepaid expenses and other current assets	10,981	12,629
Deferred income taxes	18,075	12,553
Total current assets	220,639	200,281
Property and Equipment:
Land	299,608	287,873
Buildings and improvements	711,030	687,041
Buildings under capital leases	3,289	3,289
Restaurant and other equipment	359,089	336,881
Leasehold improvements	183,729	165,472
Construction in progress	15,071	19,673
Total	1,571,816	1,500,229
Less: Accumulated depreciation and amortization of capital leases	526,576	481,247
Property and equipment – net	1,045,240	1,018,982
Other assets	47,824	45,767
Total	$1,313,703	$1,265,030

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$93,112	$93,060
Current maturities of long-term debt and other long-term obligations	8,714	8,188
Taxes withheld and accrued	29,459	32,201
Income taxes payable	—	18,066
Accrued employee compensation	46,185	48,570
Accrued employee benefits	34,241	34,926
Deferred revenues	22,618	21,162
Accrued interest expense	12,485	164
Other accrued expenses	17,905	18,332
Total current liabilities	264,719	274,669
Long-term debt	779,061	756,306
Interest rate swap liability	39,618	13,680
Other long-term obligations	83,224	53,819
Deferred income taxes	54,330	62,433
Commitments and Contingencies (Note 14)
Shareholders’ Equity:
Preferred stock – 100,000,000 shares of $.01 par value authorized; no shares issued
Common stock – 400,000,000 shares of $.01 par value authorized; 2008 – 22,325,341 shares issued and outstanding; 2007 – 23,674,175 shares issued and outstanding	223	237
Additional paid-in capital	731	—
Accumulated other comprehensive loss	-27,653	-8,988
Retained earnings	119,450	112,874
Total shareholders’ equity	92,751	104,123
Total	$1,313,703	$1,265,030

CBRL GROUP, INC CONSOLIDATED STATEMENT OF CASH FLOWS (IN PART) (In thousands, except share data)
	Fiscal years ended
	1-Aug-08	3-Aug-07	28-Jul-06
Net cash provided by operating activities of continuing operations	$124,510	$96,872	$174,694
Net cash used in investing activities of continuing operations	82,706	87,721	82,262
Net cash used in financing activities of continuing operations	44,459	502,309	5,385
Dividends on common stock	15,743	15,610	24,019

Required

a. 1. How many shares of common stock had been issued as of August 1, 2008?

2. How many shares of common stock were outstanding as of August 1, 2008?

3. What share number is used to compute earnings per share?

b. When computing the price/earnings ratio, should the basic or diluted earnings per share be used? Why?

c. Which earnings number would analysts put more emphasis on, income from continuing operations or net income?

d. Compute the book value for August 1, 2008, and August 3, 2007.

e. Compute the dividend payout for 2008, 2007, and 2006.

(Note: Consider computing dividend payout slightly different than the book formula).