Examining Financial Statements - Landrys Restaurants Essay -- Busines

Examining Financial Statements - Landry's Restaurants Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and stockholder’s equity (what is left over for the owners) (Fundamentals of Financial Accounting, 2006, p.7). The Income Statement shows whether a business made a profit (net income) during a specific period of time (Fundamentals of Financial Accounting, 2006, p. 10). The Statement of Retained Ear nings illustrates what portions of the company’s earnings was paid to stockholders and retained by the company for future operations (Fundamentals of Financial Accounting, 2006, p.12). Finally, the Statement of Cash Flows reports summarizes how a business’ â€Å"operating, investing, and financial activities caused its cash balance to change over a particular range of time† (Fundamentals of Financial Accounting, 2006, p.13). This paper examines the Annual Report of Landry’s Restaurants, Inc. Specifically, this paper demonstrates how certain financial elements can be located in Landry’s financial statements. The key financial components discussed include: (1) net income, (2) total assets, (3) property and equipment a... ...ompany has made a profit over the prior year. Conclusion Financial statements play a significant role in providing insight into Landry’s Restaurants financial condition. Is the liability or cost high and can one see continued improvement in revenues each year are questions answered when analyzing financial statements. An investor can use financial statements in making a decision to invest in a company. By examining the different financial statements, one can identify Landry’s Restaurants has grown over the past five years. Comparing assets, liabilities and owner equity, one is able to determine Landry’s Restaurants is making a profit. Reference Landry's Restaurants (2003, December 31, 2003). Landry's Restaurants Annual Report. , 1. Fundamentals of Financial Accounting (1st ed.) F. Phillips, B. Libby, and P. Libby McGraw Hill, 2006. Boston, MA