Explore BrainMass

Explore BrainMass

    Complete the Ratio analysis of Landry's Restaurant

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 11:39 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/complete-ratio-analysis-landrys-restaurant-290875

    Attachments

    Solution Preview

    See attached file for calculations.

    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.

    $2.19

    ADVERTISEMENT