How to Read a Financial Report: Wringing Vital Signs Out of the Numbers (Paperback, 10)

List of Exhibits vii

Preface to the Tenth Edition ix

Part One?Fundamentals 1

1 Arming You with Essential Knowledge 3

2 Starting with Cash Flows 13

3 Bedrock Financial Statement #1: The Income Statement 23

4 Bedrock Financial Statement #2: The Balance Sheet 31

5 Reporting Cash Flows 39

Part Two? Connections 49

6 Fitting Together Financial Statements 51

7 Sales Revenue and Accounts Receivable 59

8 Cost of Sales Revenue, Inventory, and Accounts Payable 65

9 Operating Expenses and Prepaid Expenses 77

10 Depreciation and Amortization Expense, and Fixed and Other Long- Term Assets 83

11 Operating Expenses and Accounts Payable 95

12 Accruing Liability for Unpaid Expenses 101

13 Income Tax Expense and Its Liability 107

14 Interest Expense, Accrued Liabilities, and Loans Payable 113

15 Net Income, Retained Earnings, and Earnings per Share (EPS) 123

16 Connecting the Cash Flow Dots 129

Part Three? Using and Analyzing Financial Statements 145

17 Footnotes and Management Discussions 147

18 Financial Statement Ratios and Analysis: Strength 159

19 Financial Statement Ratios and Analysis: Performance 173

20 Financial Engineering 187

21 Financial Fraud, aka Cooking the Books 199

22 CPAs and Financial Reports 211

23 Basic Questions, Basic Answers 219

About the Author 235

Index 237