- eBook:Financial Statements, Third Edition: A Step-by-Step Guide to Understanding and Creating Financial Reports
- Author:Thomas Ittelson
- Edition:3 edition
- Data:April 1, 2020
- Pages:320 pages
- Format:PDF, ePUB
Thomas R. Ittelson’s master work for entrepreneurs, non-financial managers, business students, lawyers, lenders, and investors―the bestselling book of its kind, with over 200,000 copies in print―has gotten even better with this 20th anniversary edition.
Ittelson is an expert at translating complicated financial topics in an accessible way for non-financial audiences. In this book, he empowers readers by clearly and simply demonstrating how the three major accounting statements interact to offer a snapshot of a company's financial health.
This book teaches readers how to use specialized accounting vocabulary and makes accessible the structure and purpose of the three major numeric statements that describe a company’s financial condition. Each statement paints a different and essential picture―the “three-legged stool” of company reporting:
- The income statement shows the manufacturing (or service offerings) and selling actions of the company that result in profit or loss during a period. It gives a very important perspective on the company’s performance, its profitability.
- The cash flow statement details cash into and out of the company for a period. You need money to make money. Running out of cash is bad. Duh.
- The balance sheet records at the end of a period, an instant in time, what the company owns and what it owes, including the owners’ stake, called shareholders’ equity.
Chapter 1. Twelve Basic Principles
Chapter 2. The Balance Sheet
Chapter 3. The Income Statement
Chapter 4. The Cash Flow Statement
Chapter 5. Connections
Section B. Transactions: Exploits of AppleSeed Enterprises, Inc.
Chapter 6. Startup Financing and Staffing
Chapter 7. Staffing and Equipping Facility; Planning for Manufacturing Startup
Chapter 8. Startup of Manufacturing Operations
Chapter 9. Marketing and Selling
Chapter 10. Administrative Tasks
Chapter 11. Growth, Profit & Return
Section C. Financial Statements: Construction & Analysis
Chapter 12. Keeping Track with Journals and Ledgers
Chapter 13. Ratio Analysis
Chapter 14. Alternative Accounting Policies
Chapter 15. Cooking the Books
Section D. Business Expansion: Strategy, Risk & Capital
Chapter 16. Mission, Vision, Goals, & Strategies
Chapter 17. Risk and Uncertainty
Chapter 18. Making Decisions About Appleseed’s Future
Chapter 19. Sources and Costs of Capital
Section E. Making Good Capital Investment Decisions
Chapter 20. The Time Value of Money
Chapter 21. Net Present Value (NPV)
Chapter 22. Making Good Capital Investment Decisions