Financial Statements

Essay by baseballlover21University, Bachelor'sB+, October 2008

download word file, 5 pages 5.0

This week's team assignment was drawn out for the learning team to discover the net income, total assets, explain the amounts of monies used for properties and equipment, as well as stock options used. In addition, the assignment asked that it be detailed in which components led to these answers and which financial statement was the most valuable in the team's review. We will detail these questions and provide additional information so that the reader can fully understand the portion of Landry's Restaurants, Inc. 2003 Annual Report.

In reviewing of the 2003 Annual Report of Landry's Restaurants, Inc., we can find the total net income of $45,901.00. The net income, or net profit, is the excess of the revenue over the any expenses incurred in earning the revenue (Warren, Fess, Reeve, 1996). In order to get the net income, or the net loss, can be determined through a matching process which two steps are involved.

The first step involves any revenue being recorded during a specific period of time. The second step involves any expenses used in generating that revenue being matched against the revenue to determine any net income or loss. This amount was given within the company's Income Statement Report. The Income Statement Report components consist of several calculating factors such as the restaurant's operating costs and expenses, including many sub-categories. Other components consist of other (income) and expenses such as interest and provision for income taxes.

In the 2003 Landry's Annual Report, we can find the total assets totaling $1,102,786.00 and can be found in the company's Balance Sheet portion of the Annual Report. One of the components of this figure consists of the working capital. Assets can be defined as any physical or tangible items that have value and that are owned by a business...