Financial Statement Paper Part I

724 Words Aug 28th, 2010 3 Pages
Financial Statements Financial Statements of a company measures the performance of their accounting period. The four parts of a Financial Statement are income statement, balance sheet, and statement of cash flow, and stockholders’ equity. The income statement of Landry’s Restaurants will show the summary of how the business has incurred revenues and expenses through operating expenses (Phillip, Libby, Libby, 2005). The income statement of Landry’s Restaurants, Incorporation shows the profit or loss of the company during the specific accounting period. The consolidated statement of income shows the periods of three years. Over the year with the acquisitions that were done, in 2003 Landry’s Restaurants, Inc had a net …show more content…
Securities and Exchange Commission, 2007). The statement of cash flow shows a company’s inflow and outflow of cash transactions and whether collection of revenues has been done. The statement of cash flows for Landry’s Restaurants, Inc shows an increase in 2003 for “Net Increase (Decrease) in Cash and Equivalents” (Phillips et al., 2005). Investors are looking at this line to see how profitable the company is. The business decisions that can be made using the statement of cash flows are that the financial statements provide information about the company’s ability to generate future cash flows (U.S. Securities and Exchange Commission, 2007). The information provided in the statements that will assist in making business decisions are the income statement, balance sheet, statement of cash flow, and stockholders’ equity. These reports tell investors and stockholders how profitable a company is and whether they can pay their obligations when due (U.S. Securities and Exchange Commission, 2007). The information that could have been provided to assist in a managerial decision-making is to provide information on the restaurant sites that are not making a profit. These sites need to be evaluated to see if changes need to be made within the restaurant or whether the site is in an area that is not well developed.
Summary
In conclusion, Landry’s Restaurants, Inc

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