Keys to Reading an Annual Report (Barron's Business Keys Ser.) Book

Understanding Annual Report Components
Understanding This Book     1
What Is an Annual Report?     3
Highlights, Letter, and Management's Discussion and Analysis     5
Financial Statements and Notes     7
Annual Reports on the Internet     9
Understanding Financial Statements
Basic Accounting Principles     12
Materiality     16
Note One     18
Notes on Commitments, Including Leases and Contingent Liabilities     20
Notes Relating to Pension and Post-Retirement Benefits     24
Segmental and Company-Wide Information     28
Management Evaluation of Disclosure Controls and Procedures     31
Audit Reports     33
Reports Required by Sarbanes-Oxley     37
Compilation and Review Reports     40
SEC Forms 10-K, 10-Q, and 8-K     43
Components of the Balance Sheet     46
Current Assets     51
Cash and Receivables     53
Inventories     56
Property, Plant and Equipment     59
Depreciation     61
Intangibles and Other Assets     66
Depletion and Amortization     69
Investments     71
CurrentLiabilities     77
Noncurrent Liabilities     79
Bonds and Amortization     83
Owners' Equity     86
Classes of Stock     88
Treasury Stock     93
Retained Earnings and Appropriations     95
Donated Capital and Subscribed Stock     97
Stock Issued to Employees     99
Income Statement Components     104
Sales and Other Revenues     109
Bad Debts     112
Cost of Goods Sold and Inventories     114
Manufacturing Costs     117
Operating Expenses     119
Discontinued Operations     121
Extraordinary Items     125
Taxes and Tax Deferrals     128
Comprehensive Income     132
Derivatives     135
Accrual Accounting Versus Cash Flow     140
Statement of Cash Flows     142
Consolidated Financial Statements     144
Quarterly Statements     148
Earnings Per Share     150
Analyzing Financial Statements
Ratio Analysis     154
Profitability Ratios     157
Activity Ratios     160
Liquidity Ratios     162
Cash Flow Ratios and Quality of Earnings     164
Overall (Debt and Equity) Ratios     166
Operating and Financial Leverage     168
Common Size Statements     172
Financial Statement Comparability     175
Annual Reports of Foreign Companies     178
Questions and Answers     181
Glossary     185
Actual Annual Report     192
Index     203