Einstein Bros 2006 Annual Report Download - page 42

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http://www.sec.gov/Archives/edgar/data/949373/000104746907001622/a2176540z10-k.htm[9/11/2014 10:12:36 AM]
for each of the three years in the period ended January 2, 2007. These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material
misstatement. The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above, present fairly, in all material respects, the financial position of New
World Restaurant Group, Inc. and Subsidiaries as of January 2, 2007 and January 3, 2006, and the results of their operations and their cash flows
for each of the three years in the period ended January 2, 2007, in conformity with accounting principles generally accepted in the United States of
America.
As discussed in Note 2 to the consolidated financial statements, the Company adopted the Statement of Financial Accounting Standards
No. 123(R), Share-Based Payment, on a modified prospective basis as of January 4, 2006.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedule II is presented for
purposes of additional analysis and is not a required part of the basic financial statements. This schedule has been subjected to the auditing
procedures applied in the audit of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ GRANT THORNTON LLP
Denver, Colorado
February 23, 2007
51
NEW WORLD RESTAURANT GROUP, INC.
CONSOLIDATED BALANCE SHEETS
AS OF JANUARY 2, 2007 AND JANUARY 3, 2006
(in thousands, except share information)
January 2,
2007
January 3,
2006
ASSETS
Current assets:
Cash and cash equivalents $ 5,477 $ 1,556
Restricted cash 2,403 2,554
Franchise and other receivables, net of allowance 6,393 5,506
Inventories 4,948 5,072
Prepaid expenses and other current assets 4,529 4,506
Assets held for sale 1,144 —
Total current assets 24,894 19,194
Restricted cash long-term 284 595
Property, plant and equipment, net 33,889 33,359