How to Read a Financial Report: Wringing Vital Signs Out of the Numbers

How to Read a Financial Report: Wringing Vital Signs Out of the Numbers; Copyright; Contents; List of Exhibits; Preface to the Eighth Edition; Part One: Fundamentals; Chapter 1: Starting with Cash Flows; Cash Flows Summary for a Business; What Does Cash Flows Summary Not Tell You?; Profit Cannot Be Measured by Cash Flows; Cash Flows Do Not Reveal Financial Condition; A Final Note before Moving On; Chapter 2: Three Financial Statements; Reporting Financial Condition, Profit Performance, and Cash Flows; Income Statement; Balance Sheet; Statement of Cash Flows; Chapter 3: Profit Accounting.

An Important QuestionNature of Profit; Recording Revenue and Expenses; Recording Revenue; Recording Cost of Goods Sold Expense; Recording Selling, General, and Administrative (SG & A) Expenses; Recording Depreciation Expense; Recording Interest Expense; Recording Income Tax Expense; Recording Net Income into Retained Earnings; Winding Up; Chapter 4: Profit Isn't Everything; Threefold Financial Task of Business Managers; One Problem in Reporting Financial Statements; Interlocking Nature of the Three Financial Statements; Connecting the Dots; Part Two: Connections.

Chapter 5: Sales Revenue and Accounts ReceivableExploring One Link at a Time; How Sales Revenue Drives Accounts Receivable; Accounting Issues; Chapter 6: Cost of Goods Sold Expense and Inventory; Holding Products in Inventory before They Are Sold; Accounting Issues; Chapter 7: Inventory and Accounts Payable; Acquiring Inventory on the Cuff; Accounting Issues; Chapter 8: Operating Expenses and Accounts Payable; Recording Expenses before They Are Paid; Accounting Issues; Chapter 9: Operating Expenses and Prepaid Expenses; Paying Certain Operating Costs before They Are Recorded as Expenses.

Accounting Issues: Using Prepaid Expenses to Massage the NumbersChapter 10: Depreciation Expense and Property, Plant, andEquipment; Intangible Assets; Brief Review of Expense Accounting; Depreciation Expense; Accumulated Depreciation and Book Value of Fixed Assets; Book Values and Current Replacement Costs; Intangible Assets; Accounting Issues; Chapter 11: Accruing the Liability for Unpaid Expenses; Recording the Accrued Liability for Operating Expenses; Bringing Interest Expense Up to Snuff; Accounting Issues; Chapter 12: Income Tax Expense and Its Liability; Taxation of Business Profit.

Accounting IssuesChapter 13: Net Income and Retained Earnings; Earnings per Share (EPS); Net Income into Retained Earnings; Earnings per Share (EPS); Accounting Issues; Part Three: Cash Flow; Chapter 14: Cash Flow from Operating (Profit-Making) Activities; Profit and Cash Flow from Profit: Not Identical Twins!; Changes in Assets and Liabilities That Impact Cash Flow from Operating Activities; A Quick Word about the Direct Method for Reporting Cash Flow from Operating Activities; An Alternative View of Cash Flow and Cash Flow; Accounting Issues.

Components and connections in financial statements. Starting with cash flows ; The three financial statements ; Profit isn't everything ; Sales revenue and accounts receivable ; Cost of goods sold expense and inventory ; Inventory and accounts payable ; Operating expenses and accounts payable ; Operating expenses and prepaid expenses ; A unique expense : depreciation ; Accruing the liability for unpaid expenses ; Income tax expense and its liability ; Net income and retained earnings : earnings per share (EPS) ; Cash flow from operating (profit-making) activities ; Cash flows from investing and financing activities ; Footnotes to financial statements

Financial statement analysis. Impact of growth and decline on cash flow ; Financial statement ratios ; Profit analysis for business managers

Reliability of financial reports. Accounting and financial reporting standards ; Accounting methods and massaging the numbers ; Audits of financial reports in the post-Enron era ; Parting comments.