Examining Financial Statements Essay Landry's

1254 words - 5 pages

Landry's Restaurants, Incorporated, is a multi-faceted organization operating over 300 individual units under many different brand names and locations. The company has enjoyed much success in the 10 years since going public and has reported revenues in excess of one billion dollars for the 2003 reporting period. The Management of Landry's appear confident that the company will enjoy continued successes and have referenced many forward looking statements throughout its annual report.The week three team assignment of the University of Phoenix Online Team C was to review the financial statements of Landry's Restaurants, Inc., and provide analysis of the company in four areas, 1) Income, 2) Assets, 3)Property and equipment spends, and 4) Exercised Stock Options. In addition, Team C was to determine the most important financial statement and discuss the reasons for such designation. Team C has outlined the requested information in the following paper as well as provided insight and support of the most important.Net IncomeThe amount of net income for Landry's Restaurants in 2001 was $26,920, in 2002 was $41,522, and 2003 was $45,901. The financial statements which show this information are found on the income statements sheet and cash flow sheet. The components of an income statement are many such as; revenues and cost of revenues. Additionally, this sheet displays the gross profit, operating and other expenses along with interest expense and income tax expense. Finally, on the bottom line of this sheet shows earnings per share (Phillips, Libby, & Libby, 2005, p. 577).The other sheet the net income is displayed on is the cash flow sheet. This sheet provides information the company's cash flows from operating activities such as; the net income, adjustments to reconcile to cash flows from other operations, and net cash provided by operating activities. Additionally, shown are cash flows from investing activities such as; net cash paid for property and equipment, cash paid for business acquisitions, and net cash used in investing activities. Furthermore, this sheet shows cash flows from financing activities such as; net cash from issuing (repurchasing) common stock, amounts borrowed (paid) for other financing activities, net cash provided by financing activities, net increase in cash, cash at the beginning of the year, and cash at the end of the year. Finally, displayed on the sheet is supplemental disclosure of cash flows. The information showed here is cash paid during the period for interest and cash paid during the period for income taxes (Phillips, Libby, & Libby, 2005, p. 577). Next for discussion are Landry's Restaurants total assets.Total AssetsLandry's Restaurants total assets for 2001 were $690,171, for 2002 were $933,015, and for 2003 were $1,102,785. This information is shown on a balance sheet. The components found on this sheet are assets and current assets such as; cash, accounts receivable, inventories, and other current assets...

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