Understanding Financial Statements

ch. 1 Financial Statements: An Overview Map or Maze Usefulness Volume of Information Where to Find a Company's Financial Statements The Financial Statements Notes to the Financial Statements Auditor's Report Financial Reporting Reforms Management Discussion and Analysis Five-Year Summary of Selected Financial Data and Market Data Pandora (a.k.a. "PR Fluff") Proxy Statement Missing and Hard-to-Find Information Complexities Accounting Choices The Future of Financial Statements Quality of Financial Reporting Timing of Revenue and Expense Recognition Discretionary Items The Journey Through the Maze Continues Appendix 1A Sage Inc. Self-Test Study Questions and Problems Case 1.1 Intel Case Case 1.2 Avnet Comprehensive Analysis Case Using the Financial Statement Analysis Template Case 1.3 Mattel Inc. Case 1.4 Apple Inc. ch. 2 The Balance Sheet Financial Condition Contents note continued: Consolidation Balance Sheet Date Comparative Data Common-Size Balance Sheet Assets Current Assets Cash and Cash Equivalents Marketable Securities Accounts Receivable Inventories Inventory Accounting Methods Prepaid Expenses Property, Plant, and Equipment Straight Line Accelerated Goodwill Other Assets Liabilities Current Liabilities Accounts Payable Short-Term Debt Current Maturities of Long-Term Debt Accrued Liabilities Unearned Revenue or Deferred Credits Deferred Federal Income Taxes Long-Term Debt Capital Lease Obligations Pensions and Postretirement Benefits Commitments and Contingencies Stockholders' Equity Common Stock Additional Paid-In Capital Retained Earnings Other Equity Accounts - The Balance Sheet Other Balance Sheet Items Case 2.1 Intel Case Contents note continued: Case 2.2 Avnet Comprehensive Analysis Case Using the Financial Statement Analysis Template Case 2.3 Logitech International S.A. Case 2.4 Walgreen Co. and Subsidiaries ch. 3 Income Statement and Statement of Stockholders' Equity The Income Statement Common-Size Income Statement Net Sales Cost of Goods Sold Gross Profit Operating Expense Operating Profit Other Income (Expense) Equity Earnings Earnings Before Income Taxes/Effective Tax Rate Special Items Net Earnings Earnings per Common Share Comprehensive Income The Statement of Stockholders' Equity Earnings Quality, Cash Flow, and Segmental Accounting Appendix 3A A Guide to Earnings Quality Case 3.1 Intel Case Case 3.2 Avnet Comprehensive Analysis Case Using the Financial Statement Analysis Template Case 3.3 Taser International Inc. Case 3.4 Zebra Technologies Corporation Contents note continued: ch. 4 Statement of Cash Flows Why Cash Flow Is Important: An Example Statement of Cash Flows: Basic Principle Preparing a Statement of Cash Flows Calculating Cash Flow from Operating Activities Indirect Method Cash Flow from Investing Activities Cash Flow from Financing Activities Change in Cash Analyzing the Statement of Cash Flows Cash Flow from Operations Nocash Corporation Sage Inc.: Analysis of the Statement of Cash Flows Sage Inc. Analysis: Cash Flow from Operating Activities Summary Analysis of the Statement of Cash Flows Analysis of Cash Inflows Analysis of Cash Outflows Qualitative Issues Relating to the Statement of Cash Flows Are We There Yet? Appendix 4A Statement of Cash Flows - Direct Method Case 4.1 Intel Case Case 4.2 Avnet Comprehensive Analysis Case Using the Financial Statement Analysis Template Contents note continued: Case 4.3 Gerber Scientific Inc. Case 4.4 Agilysys Inc. ch. 5 The Analysis of Financial Statements Objectives of Analysis Sources of Information Supplementary Schedules Form 10-K and Form 10-Q Other Sources Tools and Techniques Common-Size Financial Statements Key Financial Ratios Liquidity Ratios: Short-Term Solvency Cash Conversion Cycle or Net Trade Cycle Activity Ratios: Asset Liquidity, Asset Management Efficiency Leverage Ratios: Debt Financing and Coverage Profitability Ratios: Overall Efficiency and Performance Market Ratios Analyzing the Data Background: Economy, Industry, and Firm Short-Term Liquidity Operating Efficiency Capital Structure and Long-Term Solvency Profitability Relating the Ratios - The Du Pont System Projections and Pro Forma Statements Summary of Analysis Contents note continued: Financial Statements: A Map Appendix 5A The Analysis of Segmental Data Case 5.1 Intel Case Case 5.2 Avnet Comprehensive Analysis Case Using the Financial Statement Analysis Template Case 5.3 Spartech Corporation Case 5.4 Applied Materials Inc. Appendixes A.Summary of Financial Ratios B.Solutions to Self-Tests C.Glossary.