Instructions:
Please look at the following attached document with a financial statement case and re-write in your own words this paper using your expertise to the case presented. I need to have over 400 words re-written for this paper. It has to be in your own words and can use proper citation with reference.
Landry's enjoyed a net income of $45,901,054 for the year ended 2003. This was an increase of over $5M from the previous year. This information can be found on the Statement of Income. The Statement of Income shows how much money a company made and spent over a period of time. The two basic components of financial statements are the balance sheet and the income statement, which are directly related to each other. The balance sheet should always be balanced (assets should equal liabilities plus equity) and the income statement summarizes over a period of time while the balance sheet summarizes at a specific point in time.
The components of a financial statement are broken down into two different sections: the Operating section and Non-Operating section.
In the operating section, revenue is the first and main item listed on the income statement. The revenue listed on this financial statement, in the Operating section, reflects the cash earned from routine operating activities. This revenue is normally presented as sales minus sales discounts, returns, and allowances, followed by operating expenses.
In the Non-Operating section of the income statement, revenue is listed from revenues and gains from other than primary business activities (e.g. rent, patents). It also includes unusual gains and losses that are either unusual or infrequent, but not both (e.g. sale of securities or fixed assets), followed by expenses or losses not related to primary business operations.
Year-end 2003, Landry's total assets were $1,102,785. This information can be found on the Balance Sheet. The total is reflective of a significant growth increase in revenues, expenses and net income in 2003 as compared to 2002 and 2001. A balance sheet is like a still photograph which shows the firm's assets, liabilities and equity at a given point in time. This snapshot of Landry's financial position tells us nothing about the restaurant's financial position before or after that point in time.
On the balance sheet, the restaurant's assets are listed in order of their liquidity ease with which you can convert an asset to cash. This means that cash assets, current assets, are listed first and the assets that are difficult to convert to cash are listed later. Cash is followed by receivables, inventories and other assets. The assets of a more permanent nature are shown next, such as property and equipment, goodwill and other assets. Below the current liabilities are listed first and are almost always due within one year. The liabilities due later; such as long-term debt are listed later on the balance sheet.