Financial Statements Essay Example

Financial Statements Paper Part Two The financial condition of a company as reported in the company’s financial statements for a period gives company management the information needed to make vital business decisions including the decision to expand in nature or how to determine industry trends in nature by using a trend analysis. In this paper, I will discuss Landry’s Restaurants management assessments of the financial condition and explain whether or not those assessments agree with my previous assessments supported by a trend analysis. I will also discuss management’s concerns and identify and recommend a course of action for weaknesses not discussed by management.
Does managements’ assessment of the financial condition agree with your assessment from the Financial Statements Paper Part I? Explain. Support your answer using trend analysis, vertical analysis, or ratio analysis.
Landry’s Restaurants management assessment of the company’s financial condition very much agrees with my initial assessment as reported in the Financial Statements Paper Part I. I stated in my previous paper that management would need to know how much profit the company made to use as a basis in determining whether or not to expand the company. Landry’s management assessment reported the company acquired several restaurants. Making the decision to acquire many restaurants during the reporting period had to be made based on revenue and profit after expenses or net income. Debt would also be considered a factor when making the decision of whether or not to acquire additional restaurants. A company will high debt will not be able to acquire necessary credit in order to expand. In addition to financial statement information, management must have also reviewed the balance sheet to determine if the financial well-being of the company could sustain the acquisitions of new restaurants. The balance sheet would also tell management if the debt to acquire additional restaurants was feasible