The Guide to Understanding Financial Statements Book

	Preface
1	Historical Development of Financial Statements	3
2	The Four Types of Financial Statements	7
3	The Nature of Business Organizations	11
4	The Balance Sheet: A Snapshot of Financial Structure	23
5	The Income Statement: Measuring Financial Performance Over Time	33
6	The Cash Flow Statement: Where Cash Comes from, Where It Goes	41
7	The Reconciliation of Net Worth Statement: Accounting for the Bottom Line	53
8	A Few Important Financial Ratios	57
9	The Operating Cycle and Its Financial Consequences	67
10	Analyzing a Set of Financial Statements	75
11	Detecting Error, Fraud, and Window Dressing	85
12	Faux Leather	93
13	Outdoor Sports, Inc.	101
14	Frank's Electrical Supply	109
15	Green Thumb Gardens	117
16	G&G Fashions	125
17	Hammerhead Hardware	133
18	The Old Mill Restaurant	141
19	Auto Tire and Recapping	149
	Appendix: Using Spreadsheets to Standardize Financial Statements and to Calculate Cash Flows and Financial Ratios	157
	Index	167