OPPapers.com

Examining Financial Statements

Examining Financial Statements
Sheryl Lefmann, Angie Nicol, Kim Teresa Pealer,
Jeffrey Rank and Rhonda Underwood
University of Phoenix
ACC 300 Principles of Accounting


Examining Financial Statements
There are many different types of financial statements available to companies and each company uses all of the different types of financial statements available to them. These reports also allow the company to communicate their financial information to the public through financial reporting process. They are used because it allows the stockholders to have a glance at the company and to see whether or not there was a profit or loss. “The central feature of external financial reporting is a set of four financial statements: (1) an income statement, (2) a statement of changes in equity, (3) a balance sheet, and (4) a statement of cash flows” (Edmonds, Edmonds, McNair, & Olds, 2006, p. 9). Each of these financial statements has been organized into different categorizing elements. These elements are the following; assets, liabilities, equity, contributed capital, revenue, expenses, net income, distributions, gains and losses.
The purpose of this paper is to identify and discuss the differences of these financial statements and how they relate to the Landry’s Restaurants, Inc. The authors will be using Landry’s 2003 annual report to identify the companies net income; total assets; property and equipment additions; and stock options exercised, and list which financial statement was used for the identification. The authors will also identify the different components of the financial statement.
Net Income

To examine Landry’s Restaurants net income, the researchers consulted the “Consolidated Statements of Income” located on page nine of the 2003 Annual Report. This report is comprised of revenues, operating costs and expenses, other operating income, and taxes. The result of the addition and subtraction of these numbers results in the net income or the company....