Team Work

Examining Financial Statements

Business entities such as Landry’s Restaurants communicate information to the public through the financial reporting process. The central feature of external financial reporting is a set of four financial statements: an income statement, a statement of changes in equity, a balance sheet and a statement of cash flows. These statements will be provided in detail from Team B on behalf of Landry’s Restaurants. The information reported in financial statements is organized carefully into categories known as elements. There are usual 10 elements in which Team B will provide the appropriate money amount and what each represents.

The net income in 2003 was $45,901,054. Libby (2006) suggests that net income is money remaining after paying the taxes and bills. Libby (2006) gives a great example of how to arrive at net income. Income before income tax expense is how to figure income tax expense which will determine the net income. One example is my household budget. I am able to subtract expenses during of the month from bi-weekly pay periods which gives me a net income of what I have remaining at the end of the month. I analyzed the income statement which showed an increase in income from 2001 to 2003. Libby (2006) suggests that in 2003 the revenue earning was 1,105,755 million. The cost of revenues 321,738 plus operating and equipment cost was 717,018 and along with interest expense and tax expense, the net income equaled 45,901. Net income is what is left over after paying the expenses. According to Libby (2006), components are the subheadings such as revenue, cost of revenue, gross profit, income taxes and net income. These components help organize the income statement. I think that having the certain categories can make working with budgets a simple process.

The total assets for Landry’s Restaurants at the end of 2003 were $1,102,785,506. The information was found on the consolidated balance sheet. Consolidated...