Includes index

This revised and expanded second edition of Ittelsonʹs master work will give you that firm grasp of the numbers necessary for business success. With more than 100,000 copies in print, Financial Statements is a perfect introduction to financial accounting for non-financial managers, stock-market investors, undergraduate business and MBA students, lawyers, lenders, entrepreneurs, and more. Most introductory finance and accounting books fail either because they are written by accountants for accountants or the authors dumb down the concepts until they are virtually useless. Financial Statements deftly shows that all this accounting and financial-reporting stuff is not rocket science and that you can understand it! Ittelson empowers non-financial managers by clearly and simply demonstrating how the balance sheet, income statement and cash flow statement work together to offer a snapshot of any companyʹs financial health. Every term is defined in simple, understandable language. Every concept is explained with a basic, straightforward transaction example. And with the bookʹs uniquely visual approach, youʹll be able to see exactly how each transaction affects the three key financial statement of the enterprise. Two new major sections with nine new chapters were added to this revised second edition of Financial Statements, simply the clearest and most comprehensive introduction to financial reporting available. -- Back cover

Section A. Financial statements: structure & vocabulary : Twelve basic principles -- Balance sheet -- Income statement -- Cash flow statement -- Connections -- Section B. Transactions: exploits of AppleSeed Enterprises, Inc. : Startup financing and staffing -- Staffing and equipping facility: planning for manufacturing startup -- Startup of manufacturing operations -- Marketing and selling -- Administrative tasks -- Growth, profit & return -- Section C. Financial statements: construction & analysis : Keeping track with journals and ledgers -- Ratio analysis -- Alternative accounting policies and procedures -- Cooking the books -- Section D. Business expansion: strategy, risk & capital : Mission, vision, goals, strategies, actions and tactics -- Risk and uncertainty -- Making decisions about AppleSeed's future -- Sources and costs of capital -- Section E. Making good capital investment decisions : The time value of money -- Net Present Value (NPV) -- Making good capital investment decisions -- Summary and conclusions -- Appendix A. Short history of business fraud and speculative bubbles -- Appendix B. Nominal dollars vs. real dollars