Landry's Restaurant's - Essay Example

The government would interfere with the operations of the business if the financial statements show that the company violated environmental laws such as throwing factory wastes into the pristine rivers beside the factory. The following paragraphs will explain the different components of these financial statements with explanations where needed. The data on page 22 show that the company generated net income of $18,112 for the year 2007. It also generated the amount of $ 21,770 in net loss for the year 2006.

It also generated the amount of $ 44,815 in net income for the year 2005. It also generated the amount of $ 66,7521 in net income for the year 2004. Lastly, It also generated the amount of $ 44,914 in net income for the year 2003. Another term for the net income is the bottom line. The net incomes generated for the years 2007, 2005, 2004, and 2003 show that the companys managers did well during these accounting periods. On the other hand, the company did badly during the year 2006 because the income statement shows it generated the failing grade of net loss.

This financial information was taken from the Income statement on page 24 of the voluminous data studied. This one of the three financial statements companies are required to produce in one accounting period. It shows how the business operations did in terms of revenues, costs and expenses. The other two financial statements are the balance sheet and the statement of cash flows. The components of this financial statement include the revenues. This account title represents that the total amount generated from cash revenues and accounts receivable revenues during one accounting period.

Cash revenues are revenues generated where the customers pay cash for eating in the restaurant and /or using its facilities for business or personal use. The accounts receivable