Examining Financial Statements - Landry's Restaurants

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Examining Financial Statements - Landry 's Restaurants
Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and
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While the total expense of property and equipment additions is located in Landry’s Statement of Cash Flows, a complete listing of the components is found in the notes to Landry’s Financial Statements. The notes to Landry’s Financial Statements show that in 2003 the company spent $170,163,593 on land and $234,372,485 on furniture, fixtures and equipment (Fundamentals of Financial Accounting, 2006, p.631).
Stock Options
In order to locate information regarding Landry’s stock options, a statement user would refer to the financial statement titled “Consolidated Statements of Stockholders’ Equity” (Fundamentals of Financial Accounting, 2006, p.627). Stockholder’s equity is defined in the text as “the financing provided by the owners and the operation of business” (Fundamentals of Financial Accounting, 2006, p.700). Reviewing Landry’s Consolidated Statements of Stockholders’ Equity, under the component “exercise of stock options and taxes,” Landry’s reported 251,196 of common stock shares in the amount of $2,512 for 2003 (Fundamentals of Financial Accounting, 2006, p.627). The additional paid in capital was reported at $439,616,066 with a total of $2,679 416 (Fundamentals of Financial Accounting, 2006, p.627).

Most Important Financial Statement
Landry’s Restaurants has used several financial statements in the annual report. The Selected Financial Data statement includes the Income Statement, Other Data and Balance Sheet Data (at end of period), one of

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