Using the attached file, please answer these questions.
How much did the restaurant spend on property and equipment additions?
Which financial statement did you find this information?
What are the components of this financial statement?
(1) The restaurant spent $162,894,783 total on property and equipment additions in 2003. They spent $115,903,544 total on property and equipment additions in 2002 and $73,462,974 in 2001.
(2) This information is presented in the Landry's Cash Flow Statement.
(3) Cash flow is determined by looking at three components by which cash enters and leaves a company: operations, investing and financing.
Measuring the cash inflows and outflows caused by core business operations, the operations component of cash flow reflects how much cash is generated from a company's products or services. Generally, changes made in cash, accounts receivable, depreciation, inventory and accounts payable are reflected in cash from operations.
Cash flow is calculated by making certain adjustments to net income by adding or subtracting differences in revenue, expenses and credit transactions (appearing on the balance sheet ...
Financial statement of a restaurant is given. How much the restaurant spent on property and equipment additions is given.
Financial Statements for Landry's Restaurant
Prepare a financial statements analysis using the financial statements of Landry's Restaurants located in Appendix A of the text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby, compute the following ratios for 2002 and 2003 to the following assignments from the e-text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby.
1) Net profit margin
2) Gross profit percentage
3) Fixed asset turnover
4) Return on equity (ROE)
5) Earnings per share
6) Quality of income
7) Receivables turnover
8) Inventory turnover
9) Current ratio
11) Times interest earned
12) Cash coverage ratio
13) Capital acquisitions ratio
You must use the template provided.
Describe the purpose of each ratio.
Based on your analysis, what does each ratio tell you of Landry's financial performance (consider the changes between years)?View Full Posting Details