OUTLINE:
How to Read Financial Statements
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How to Read a Finanical Report
A Few Words Before We Begin
Financial Statements
Consolidated Balance Sheet
Consolidated Income Statement
Consolidated Statement of Changes in Shareholders' Equity
Consolidated Statement of Cash Flows
The Balance Sheet
Assets
Current Assets
Cash
Marketable Securities
Accounts Receiveable
Inventories
Prepaid Expenses
Property, Plant and Equipment
Depreciation
Intangibles
Liabilities
Current Liabilities
Accounts Payable
Notes Payable
Accrued Expenses
Income Tax Payable
Other Liabilities
Long-term Liabilities
Deferred Income Taxes
Debentures
Other Long-term Liabilities
Total Liabilities
Shareholders' Equity
Capital Stock
Preferred Stock
Common Stock
Additional Paid-In Capital
Retained Earnings
Foreign Currency Translation Adjustments
Treasury Stock
Just What Does the Balance Sheet Show?
Net working Capital
Current Ratio
Quick Ratio
Debt to Equity
Inventory Turnover
Book Value of Securities
Net Asset Value Per Bond
Net Asset Value Per Share of Preferred Stock
Net Book Value per Share of Common Stock
Capitilization Ratio
The Income Statement
Net Sales
Cost of Sales
Gross Margin
Depreciation and Amortization
Selling, General, and Administrative Expenses
Interest Expense
Income Taxes
Income Before Extraordinary Loss
Extraordinary Loss
Net Income
Other Items
Analyzing the Income Statement
Interest Coverage
What about Leverage?
Preferred Dividend Coverage
Earnings Per Common Share
Primary Earnings Per Common Share
Fully Diluted Earnings Per Common Share
Price-Earnings Ratio
Statement of Change in Shareholder's Equity
Dividends
Return on Equity
Statement of Cash Flows
Qualifying and Certifying
Watch Those Footnotes
Indepedent Audits
The Long View
Selecting Stocks
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