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Complete the Ratio analysis of Landry's Restaurant

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Week 4 Individual Assignment: Ratio Analysis of Landry's Restaurant

Click the tab at the bottom of this sheet titled "Problem worksheet" to complete the template

Landry's annual report can be found in Appendix A; Fundamentals of Financial Accounting, 1st ed. The appendix has much more detail about the company than appears here. It is not necessary to download and print the Appendix A. All the information needed to work this problem set appears below.

Balance Sheet (in thousands)

Year Ended December 31

2003 2002 2001
Assets:
Cash 35,211 13,878 31,081
Accounts Receivable 23,272 19,910 13,519
Inventories 47,772 40,879 33,563
Other Current Assets 14,349 18,002 15,958

Total Current Assets 120,604 92,669 94,121
Property & Equipment 965,575 830,930 587,829
Other Assets 16,606 9,416 8,221

Total Assets 1,102,785 933,015 690,171

Liabilities & Stockholder's Equity:
Current Liabilities 159,581 148,354 100,137
Long-Term Liabilities 338,654 217,586 196,364
Total Liabilities 498,235 365,940 296,501
Stockholder's Equity 604,550 567,075 393,670

Total Liabilities & Equity 1,102,785 933,015 690,171

Income Statement (in thousands)

Year Ended December 31

2003 2002 2001

Revenues 1,105,755 894,795 746,642
Cost of Revenues 321,783 257,945 219,684
Gross Profit 783,972 636,850 526,958
Operating & Other Expenses 717,018 571,676 478,540
Interest Expense 9,561 4,997 9,402
Income Tax Expense 11,492 18,655 12,096
Net Income 45,901 41,522 26,920

Statement of Cash Flows (in thousands)

Year Ended December 31

2003 2002 2001

Cash Flow from Operations:
Net Income 45,901 41,522 26,920
Adjustments to reconcile to cash flows from operations 75,629 70,116 62,051
Net cash provided from operations 121,530 111,638 88,971
Cash Flow from Investing Activities:
Net cash paid for property & equipment (162,895) (113,806) (72,713)
Cash paid for business acquisitions (27,036) (161,108) (32,581)
Net cash used in investing activities (189,931) (274,914) (105,294)
Cash Flow from Financing Activities:
Net cash from issuing (repurchasing) common stock (6,591) 132,978 3,472
Amounts borrowed (paid) for other financing activities 96,325 13,095 17,772
Net cash provided by financing activities 89,734 146,073 21,244

Net increase (decrease) in cash 21,333 (17,203) 4,921
Cash at beginning of year 13,878 31,081 26,160

Cash at end of year 35,211 13,878 31,081

Other Data (in thousands)

2003 2002 2001
Average number of common shares outstanding 27,600 25,900 21,750
Interest expense 9,561 4,997 9,402
Income tax expense 11,492 18,654 12,095
Cash dividends paid 2,769 2,500 2,168

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Attachments

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ANALYSIS OF FINANCIAL PERFORMANCE OF LANDRY RESTAURANT:

The financial performance of the company is improved in the year 2003 compared to the year 2002 as the earnings per share is increased from 1.6 to 2.0. However, return on assets is dipped from 4.45% to 4.16% as the each dollar of money invested in assets gives less ...

Solution Summary

The expert completes the ratio analysis of Landry's restaurants.

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