The Interpretation of Financial Statements: The Classic 1937 Edition Book

PART I. BALANCE SHEETS AND INCOME ACCOUNTSPREFACE vii
I. BALANCE SHEETS IN GENERAL 3
II. DEBITS AND CREDITS 5
III. TOTAL ASSETS AND TOTAL LIABILITIES 9
IV. CAPITAL AND SURPLUS 11
V. PROPERTY ACCOUNT 14
VI. DEPRECIATION AND DEPLETION 16
VII. NON-CURRENT INVESTMENTS 19
VIII. INTANGIBLE ASSETS 21
IX. PREPAID EXPENSES 24
X. DEFERRED CHARGES 26
XI. CURRENT ASSETS 28
XII. CURRENT LIABILITIES 30
XIII. WORKING CAPITAL 31
XIV. CURRENT RATIO 34
XV. INVENTORIES 36
XVI. RECEIVABLES 39
XVII. CASH 41
XVIII. NOTES PAYABLE 43
XIX. RESERVES 45
XX. BOOK VALUE OR EQUITY 48
XXI. CALCULATING BOOK VALUE 50
XXII. BOOK VALUE OF BONDS AND STOCKS 52
XXIII. OTHER ITEMS IN BOOK VALUE 54
XXIV. LIQUIDATING VALUE AND NET CURRENT Asset Value 55
XXV. EARNING POWER 57
XXVI. A TYPICAL PUBLIC UTILITY INCOME ACCOUNT 58
XXVII. A TYPICAL INDUSTRIAL INCOME ACCOUNT 61
XXVIII. A TYPICAL RAILROAD INCOME ACCOUNT 62
XXIX. CALCULATING EARNINGS 64
XXX. THE MAINTENANCE AND DEPRECIATION FACTOR 67
XXXI. THE SAFETY OF INTEREST AND PREFERRED DiVIDENDS 70
XXXII. TRENDS 72
XXXIII. COMMON STOCK PRICES AND VALUES 74
XXXIV. CONCLUSION 77

PART II. ANALYZING A BALANCE SHEET AND INCOME ACCOUNT BY THE RATIO METHOD 81

PART III. DEFINITIONS OF FINANCIAL TERMS AND PHRASES 91