Financial Statements Essay

444 WordsJul 19, 20092 Pages
Examining Financial Statements Alex Rios ACC300/Principles of Accounting June 22, 20009 Examining Financial Statements Financial statements are necessary in order for a business to show where its money came from, where the money went, and where the money is now (Securities and Exchange Commission, 2009.) Landry’s Restaurant has hired A-Team Analysts Service to examine the financial statements of the business for 2003. The CEO of Landry’s wants the A-Team to analyze the financial statements to ensure it shows the public and stockholders an accurate financial picture of the company. The A-Team will examine all of the financial statements and discuss Landry’s income, assets, property additions and stock options. Finally, A-Team Analysts will discuss which single income statement is the most important for the business. Landry’s Net Income In order to find the reported net income, A-Team had to look at Landry’s income statement (Phillips, Libby and Libby, 2006). The income statement shows how much money is made and spent over a period of time. The income statement will list all revenues and subtract the operating expenses. The dollar amount of the revenues minus the operating expenses represents operating income. The operating income is then subtracted by other expenses not related to operations and an income tax allowance. The dollar figure after the computations listed will reflect the company’s net income. A-Team reviewed the income statement, and determined that the statement did show an accurate net income amount of $45,901,054 for the period of year ending December 31, 2003. Landry’s Total Assets According to Landry’s Consolidated Balance Sheet found in Phillips, Libby and Libby, 2006, the total assets for Landry’s Restaurants in 2003 is $1,102,785,506. The balance sheet also shows total assets for 2002, which were $933,015,079. Other

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