How to Read a Financial Report. John A. Tracy

How to Read a Financial Report - John A. Tracy


Скачать книгу
almost all cases financial statements are supplemented with additional information, which is presented in footnotes and supporting schedules. One very common supporting schedule is the statement of changes in stockholders’ (owners’) equity. The broader term financial report refers to all this, plus any additional commentary from management, narrative explanations, graphics, and promotional content that accompany the financial statements, footnotes, and supporting schedules. Distribution of the financial reports of a private business may be restricted to its top-level managers, its shareholders, and major creditors. Federal laws require publicly owned businesses to make their financial reports publicly available.

Dollar Amounts in Thousands
Sales Revenue $ 52,000)
Cost of Goods Sold Expense (33,800)
Gross Margin $ 18,200)
Selling, General, and Administrative Expenses (12,480)
Depreciation Expense (785)
Earnings Before Interest and Income Tax $ 4,935)
Interest Expense (545)
Earnings Before Income Tax $ 4,390)
Income Tax Expense (1,748)
Net Income $ 2,642)
Dollar Amounts in Thousands
Last Year-End) This Year-End) Change)
Cash) $ 3,735) $ 3,265) $0(470)
Accounts Receivable) 4,680) 5,000) 320)
Inventory) 7,515) 8,450) 935)
Prepaid Expenses) 685) 960) 275)
Current Assets) $ 16,615) $ 17,675)
Property, Plant, and Equipment) $ 13,450) $ 16,500) 3,050)
Accumulated Depreciation) (3,465)) (4,250)) (785)
Cost Less Depreciation) $ 9,985) $ 12,250)
Intangible Assets) $ 5,000) $ 5,575) 575)
Long-Term Operating Assets) $ 14,985) $ 17,825)
Total Assets) $ 31,600) $ 35,500) $ 3,900)
Accounts Payable) $ 2,675) $ 3,320) $ 645)
Accrued Expenses Payable) 1,035) 1,515) 480)
Income Tax Payable) 82) 165) 83)
Short-Term Notes Payable) 3,000) 3,125) 125)
Current Liabilities) $ 6,792) $ 8,125)
Long-Term Notes Payable) $ 3,750) $ 4,250) 500)
Capital Stock—793,000 shares and 800,000 shares respectively) $ 7,950) $ 8,125) 175)
Retained Earnings) 13,108) 15,000) 1,892)
Stockholders’ Equity) $ 21,058) $ 23,125)
Total Liabilities and Stockholders’ Equity) $ 31,600) $ 35,500) $ 3,900)

      The first question on everyone’s mind is usually whether a business made a profit


Скачать книгу