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How to Read a Financial Report : Wringing Vital Signs Out of the Numbers, 9th Edition

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How to Read a Financial Report : Wringing Vital Signs Out of the Numbers, 9th Edition

John A. Tracy, Tage C. Tracy

ISBN: 978-1-119-60646-8 February 2020 208 Pages

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$22.95
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Description

The updated new edition of the comprehensive guide to reading and understanding financial reports

Financial reports are used to provide a range of vital information, including an organization’s cash flow, financial condition, and profit performance (aka The Big Three Financial Statements). Financial statements are often complex and extremely difficult to understand for anyone other than accounting and finance professionals. How to Read a Financial Report enablesinvestors, lenders, business leaders, analysts, and managers to read, analyze, and interpret financial accounting reports. Designed specifically for non-specialists, this reader-friendly resource covers the fundamentals of financial reporting in jargon-free English. Topics such as sales revenue & recognition, costs of goods sold, sources & uses of capital/cash, non-cash expenses (e.g., depreciation expense), income tax obligations, understanding profits & financial stability, and financial statement ratios & analysis are covered throughout the book.

Now in its ninth edition, this bestselling guide has been thoroughly revised to reflect changes in accounting and financial reporting rules, current practices, and recent trends. New and expanded content explains managing cash flow, illustrates the deceitful misrepresentation of profits in some financial reports (aka Financial Engineering), and more. Further, end-of-chapter activities help readers learn the intricacies of the balance sheet and cash flow statement, while updated sections address shifts in regulatory standards. Written by two highly experienced experts in financial accounting, this resource: 

  • Enables readers to cut through the noise and focus on what financial reports and financial statements are really saying about a company
  • Clarifies commonly misunderstood aspects of financial reporting and how companies can “financially engineer” operating results
  • Offers comprehensive, step-by-step guidance on analyzing financial reports
  • Provides numerous examples and explanations of various types of financial reports and analysis tools

List of Exhibits

Preface to the Ninth Edition

Part One—Fundamentals

1 Starting with Cash Flows

2 Two Bedrock Financial Statements

3 Reporting Cash Flow

4 Fitting Together Financial Statements

Part Two—Connections

5 Sales Revenue and Accounts Receivable

6 Cost of Goods Sold Expense and Inventory

7 Inventory and Accounts Payable

8 Operating Expenses and Accounts Payable

9 Operating Expenses and Prepaid Expenses

10 Depreciation Expense and Property, Plant, and Equipment; Intangible Assets

11 Accruing Liability for Unpaid Expenses

12 Income Tax Expense and Its Liability

13 Net Income and Retained Earnings; Earnings per Share (EPS)

14 Cash Flow from Operating (Profit Seeking) Activities

15 Cash Flow from Investing and Financing Activities

Part Three—Using Financial Statements

16 Footnotes and Management Discussions

17 Financial Statement Ratios and Analysis

18 Financial Engineering

19 CPAs and Financial Reports

20 Basic Questions, Basic Answers

About the Authors

Index