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

by Tracy, John A.

• ISBN13: 9780470405307
• ISBN10: 0470405309
• Edition: 7th
• Format: Paperback
• Copyright: 2009-05-04
• Publisher: Wiley

Summary

How to Read a Financial Report Seventh EditionFinancial reports provide vital information to investors, lenders, and managers. Yet, the financial statements in a financial report seem to be written in a foreign language that only accountants can understand. This Seventh Edition of How to Read a Financial Report breaks through the language barrier, clears away the fog, and offers a plain-English user's guide to financial reports. The book helps you get a sure-handed grip on the profit, cash flow, and financial condition of any business.Here's what's new in the Seventh Edition:Discussion of the transition to international accounting and financial reporting standardsA streamlined centerpiece exhibit used throughout the book to explain connections between the three financial statementsAn integrated section on analyzing profit, cash flow, and solvency for investors, lenders, and managers (now Part Two in this edition)Reflection on financial reporting and auditing in the post-Enron era"What distinguishes Tracy's efforts from other manuals is an innovative structure that visually ties together elements of the balance sheet and income statement by tracing where and how a line item in one affects an entry in another." -Inc."An excellent job of showing how to separate the wheat from the chaff without choking in the process." -The Miami Herald"A wonderful book organized logically and written clearly. For a Fool to be an effective investor, she has to know her way around a financial statement. This book will help you develop that skill. It's the clearest presentation of many accounting concepts that this Fool has seen." -Selena Maranjian, The Motley Fool

Author Biography

JOHN A. TRACY is an award-winning Professor of Accounting, Emeritus, at the University of Colorado at Boulder. His other books include The Fast Forward MBA in Finance, Second Edition, Accounting For Dummies, Fourth Edition, and Accounting Workbook For Dummies, all published by Wiley.

Table of Contents

Components and Connections in Financial Statements

Starting with Cash Flows

The Three Financial Statements

Profit IsnG+&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

Cash Flow from Operating (Profit-making) Activities

Cash Flow 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 Post-Enron Era

Parting Comments

Index

Table of Contents provided by Publisher. All Rights Reserved.