Peg Heslinga, MBAUniversity of Phoenix2 July 1, 2008Examining Financial Statements - Landry's RestaurantsIn this paper one will examine the annual report for Landry's restaurants. The balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows are the basics of any annual report (Fundamentals of Financial Accounting, 2006). Each report provides different information. The Balance Sheet reports a company's assets (what it owns), liabilities (what it owes) and stockholder's equity (what is left over for the owners) at a point in time. The Income Statement shows whether a business made a profit (net income). The Statement of Retained Earnings shows what portions of the company's earnings where paid to stockholders and or retained by the company for future operations. Finally, the Statement of Cash Flows report summarizes how a business' caused its cash balance to change over time (Fundamentals of Financial Accounting).
The Income Statement according to the 2003 Annual Report, Landry's Restaurants, Inc. reported a net income of $45,901,054 in 2003.
In Landry's Income Statement, the restaurants reported having revenues of $1,105,755,057. Landry's Income Statement shows expense categories that include cost of revenue, labor, administration, depreciation and amortization. In this Income Statement, net income is determined by totaling the expenses and subtracting the total reported revenue. Landry's total operating costs and expenses equal $1,037,338,293 in 2003 (Fundamentals of Financial Accounting, 2006).
Landry's reports assets on its Balance Sheet. In 2003, Landry's Total Assets were valued at $1,102,785,506. The asset listed on Landry's Balance Sheet include: cash and cash equivalents, accounts receivable, inventory, deferred taxes, total current assets, property and equipment, goodwill and other assets (Fundamentals of Financial Accounting, 2006).
To determine how much Landry has spent on property and equipment additions in 2003, one would look to Landry's Statement of Cash Flows. In 2003, Landry's spent...