Financial Statements Course Guide
Reading and Understanding Financial Statements
Background and History
- 1929 Crash
- Great Depression
- Security and Exchange Acts of 1933,34
- FDR & Joe Kennedy
- Benjamin Graham
- Intelligent Investor
- Value investing
- Warren Buffet: Investing, M&A & Valuation
Financial Statements
- Balance sheet
- A = L + E
- House analogy
- Left hand side of the Balance Sheet
- Assets most liquid first
- Current Assets
- Cash
- Accounts Receivable
- Inventory
- Long Term Assets: FF&E
- Depreciation
- Tangible Assets
- Intangible Assets
- Intellectual Property
- Patents: Utility, Design, Provisional
- Trademarks
- Copyright
- Logos & Slogans
- Amortization
- Intellectual Property
- Right hand side of the Balance Sheet
- Current Liabilities
- Accounts Payable
- Current Portion of LTD
- Long Term Debt
- Types of debt
- Senior
- Junior
- Mezzanine
- Convertible
- Equity
- Common Stock
- Preferred Stock
- Par Value
- Retained Earnings
- Right side finances the left side assets
Income Statement
- Revenue – Expenses = Net Income
- Sales
- COGS
- SG&A
- Payroll
- EBITDA
- EBIT
- Interest expense
- Taxable income
- Income taxes
- Dividends
- Retained Earnings
- Net income
- Like monthly personal finances
Cash flow Statement
Cash vs. accrual accounting: Kahn Academy
Matching Principle
Operations
- Changes in AR AP
- Depreciation and Amortization
Investing
- Capital investments
- Sale of assets Salvage value
Financing
- Debt
- Equity stock
Financial Statement Flow
- Financial Statement Flow Diagram
- Fin Statement Flow Worksheet
Financial Statement Analysis
Ratios
- Current
- Quick
- P/E
- Turnover
- D/E
GAAP Rules
- Audited
10K and Annual Reports
- sec.gov
- Public Company Reporting Requirements
- Google Finance
