Financial Statements Paper Part 2

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Landry’s Restaurants, Inc Financial Statements II
Classic Payroll Services
Acc 497
October 5, 2010

Abstract
The previous Landry’s Restaurants, Inc Financial Statements paper discussed the financial stability of the company from an independent viewpoint. The comparison of the assessment provided to the management perspective provided in the Annual Report will now be discussed. Concerns from management, and recommendations to address weaknesses and the managements concerns will be reviewed.

Landry’s Restaurants, Inc Financial Statements II
The financial condition of Landry’s Restaurants, Inc. was discussed previously based on the information provided in the financial statements of the company. The management of Landry’s Restaurants Inc. also discusses the financial condition and results of operations in the Annual Report. The assessment provided in the initial paper on Landry’s financial statements will be compared to management’s assessment to compare and contrast the evaluations. Does Management Agree with Individual Assessment

Revenues and Expenses
Management reviews the information provided in the financial statements with a combination of trend, vertical, and ratio analysis. The data is compared annually to show the percentage increase in the individual amounts, and the data is reviewed as a percentage of revenues in determining if costs of earning revenues are constant or changing as the amount of revenue is adjusted. Management determined that revenues increased by 23.6% in 2003, cost of revenues increased 24.7%, restaurant labor expenses increased 24.7%, and other expenses increased 21.2%. The expenses as a percentage of revenues all increased during the year causing the restaurant level profit to be equal to the profit of the previous year that indicates no growth in operating activity although the business is growing (F. Phillips, 2006). Management’s assessment supports the assessment provided in the initial paper...
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