Examining Financial Statements Paper

A stock must make a profit to slip away in business. One of the elements used to determine the profitability and the process of a business is the financial statement that shows the financial linear perspective in terms of revenue and operating cost. Business proprietor?s, investor?s and stockholder?s rely on this financial information to make appropriate and decisive decisions.

In Landry?s eatery, the net income is showing as$45,901,054 in division 200310.5% summation from grade 200241,521,616in year 200254.2% increase from year 200126,919,569 in year 2001The income statement shows the sorts over the past three years. For instance, the net income has increase from $41,521,616 in year 2002 to $45901054 in year 2003 with percentage change of (10.5 %). Also, from $26,919,569 in year 2001 to $41,521,616 with percentage change of (54.2%) On the different hand, operating cost has increased by (24.9 %) in year 2003 and (18.9%) in year 2002. Stockholders and investors need to know whether the Landry?s Restaurant is a profitable business to invest in or not. Increase in revenue by the end of 2003 (23.6%) and 2002 (19.8 %) indicates that the business is generating profit; however, the net income has decreased in year 2003 match to year 2002 by (80.6%) Although the business still is generating profit, the net income has shrewdly declined in the last year indicating that there might be further drop in its total net income for the succeeding(a) year unless management makes appropriate decisions to enhance its performance and profitability.



Also, stockholders and investors testament re-evaluate their financial investment with Landry?s Restaurant.

Further, the statement shows the following? woo of revenues?Restaurant labour?Other restaurant operating expenses? oecumenical and administrative expense?Depreciation and amortization?Asset hinderance expense?Restaurant pre-opening expenses?Total operating costs and expenses?operating(a) income?Interest expenses?Income taxes?Net incomeManagement uses the income statement to evaluate its performance internally. Investors and stockholders overly evaluate...

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