Synopses & Reviews
This updated and revised edition of the best-selling guide shows how to interpret the numbers (and read between the lines) of a financial report. Explains how to cut through the maze of numbers and distill the tangible implications for managing and investing in business. The Third Edition covers changes in the tax laws and depreciation rates and the latest FAS pronouncements on cash flow statements and features an updated treatment of the auditor's standard report. Includes more information on spreadsheets, references, and examples, plus 100 diagrams and charts.
Table of Contents
Starting with Cash Flows.
Introducing the Balance Sheet and Income Statement.
Profit Isn't Everything.
Sales Revenue--Accounts Receivable.
Cost of Goods Sold Expense--Inventory.
Inventory--Accounts Payable.
Operating Expenses--Accounts Payable.
Operating Expenses--Accrued Expenses (Payable).
Operating Expenses--Prepaid Expenses.
Property, Plant, and Equipment--Depreciation--Accumulated Depreciation.
Interest Expense--Accrued Expenses (Payable).
Income Tax Expense--Income Tax Payable.
Net Income (Profit)--Retained Earnings.
Cash Flow Analysis of Profit.
Alternative Format for Reporting Cash Flow from Profit.
Other Cash Flows: Financing and Investing Activities.
Growth Versus No-Growth: Impact on Cash Flow.
Footnotes--The Fine Print in Financial Reports.
The Cost of Credibility--Audits by CPAs.
Manipulating the Numbers (Or, Cooking the Books).
The Cost of Goods Sold Conundrum.
Accelerated or Straight-Line Depreciation.
Ratios for Creditors and Investors.
A Few Parting Comments.
Index.