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Examining Financial Statements

1. Examining Financial Statements Paper
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, prepare a 1,050-1,400-word paper that addresses the following questions:
a. What is the amount of net income? Which financial statement did you find this information? What are the components of this financial statement?
b. What are the total assets? Which financial statement did you find this information? What are the components of this financial statement?
c. How much did they spend on property and equipment additions? Which financial statement did you find this information? What are the components of this financial statement?
d. Were any stock options exercised? Which financial statement did you find this information? What are the components of this financial statement?
e. Which financial statement do you feel is the most important? Why?
Properly cite your references. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

Landry's has grown significantly in recent years, with its balance sheets in Exhibit 13.2
showing a 35 percent increase in total assets from $690 million in 2001 to $933 million in
2002 [35% _ ($933 _ 690) _ $690 _ 100%]. In 2003, total assets increased again, from
$933 million in 2002 to $1.1 billion in 2003. Most of this growth appears in the Property
and Equipment category. The financial highlights section of Landry's annual report explains
the cause of this growth. The company added 95 new restaurants during 2002 and
2003, bringing the number of restaurants to 286 at December 31, 2003. The liabilities and
stockholders' equity section of the balance sheets in Exhibit 13.2 suggest that the growth

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The response addresses the queries posted in 1097 words with references.

// Here, I am going to examine the financial Statements of Landry's Restaurant. Proper analysis of the financial Statements is very necessary for determining the profit and loss value. So firstly, I am providing the Introduction of Landry's Restaurant//

Introduction

Landry's Restaurant was first established in the year 1980 in Katy, Texas. It deals in the development of the restaurants and hospitality projects. It operates its business in 35 states of the US. It provides a value service and satisfaction to the customers, by providing courteous service and great food at the reasonable price. It is one of the fastest growing restaurant companies. The sales of Landry's are increasing continuously that is causing for the strong growth potential. It is on the way of becoming largest Seafood Restaurant Company in the US (Landry's Restaurant, 2005).

// After the introduction, it is necessary to focus on the components of Financial statements that include Net Income. Apart from that, income statement of the Company has also been focused, for instance: Net Sales or Revenue, Cost of goods sold, Gross Margin, Operating Expenses, Operating income, Income tax and pretax income and so on.//

Net Income

The net income of Landry's is growing significantly. The net income in the income statement of the company was $26.92 million for the year 2001 that showed an increase of about 54% to $41.52 million for the year 2002. The net income has increased by 8% in the year 2003 that is $44.19 million from the $41.52 million in the year 2002 (Landry's Restaurant Inc., 2002). The income is increasing continuously. This information is found in the income statement of the company. The company contains all the expenses and revenue for a particular time period. Income statement of an organization includes the various other components that define the revenue and expenses of the business operations. The income statement contains following components -

Net Sales or Revenue - The income statement includes total revenue or net sales of the company that is generated by the business operations.

Cost of goods sold -It is the amount that is related to the ...

Solution Summary

The response addresses the queries posted in 1097 words with references.

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