Analyzing Financial Statements Using the Internet: Outback Steakhouse Go to the Web site for Outback Steakhouse (www.outback.com). Click on Company Info, Investor Relations, and then Financial Documents. Find and open the most recent annual report. Answer the following quantion.

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1. Locate Outback's revenue recognition policy in the Notes to Consolidated Financial Statements. When does Outback recognize revenue? Does it differ for franchise sales (i.e., the sale of a fran- chise to an investor)? How? 2. Why does Outback have "unearned revenue"? Where is it found in the financial statements? 3. Refer to Outback's Statement of Income. What items comprise its total revenues? 4. What specific items comprise Cost of Sales? Is labor considered part of this line item? 5. Does Outback prepare its income statement using the cash or accrual basis? What items on the balance sheet are clues to answering this question? 6. Do you think Outback Steakhouse is a profit-seeking organization? What clues on the financial statements help you answer this?