The Fast Forward MBA in Finance, Second Edition

Author:John Tracy, John A. Tracy
Format:PDF 2.3MB
Publisher: Wiley
Number Of Pages: 266
Publication Date: 2002-08-15
ISBN-10 / ASIN: 0471202851
ISBN-13 / EAN: 9780471202851

The author is well-renowned and highly successful.

Figures and examples are revised and spreadsheet ready templates are provided.
Offers quick tips and cutting-edge ideas.
Totally revised new edition of a highly successful book.

PART 1 FINANCIAL REPORTING OUTSIDE AND INSIDE A BUSINESS

CHAPTER 1—GETTING DOWN TO BUSINESS 3
Accounting Inside and Out 4
Internal Functions of Accounting 6
External Functions of Accounting 6
A Word about Accounting Methods 8
End Point 9

CHAPTER 2—INTRODUCING FINANCIAL STATEMENTS 11
Three Financial Imperatives, Three Financial Statements 11
Accrual-Basis Accounting 13
The Income Statement 16
The Balance Sheet 18
The Statement of Cash Flows 21
End Point 24

CHAPTER 3—REPORTING PROFIT TO MANAGERS 27
Using the External Income Statement for Decision-Making Analysis 27
Management Profit Report 31
Contribution Margin Analysis 35
End Point 36

CHAPTER 4—INTERPRETING FINANCIAL STATEMENTS 39
A Few Observations and Cautions 39
Premises and Principles of Financial Statements 41
Limits of Discussion 46
Profit Ratios 47
Book Value Per Share 49
Earnings Per Share 51
Market Value Ratios 53
Debt-Paying-Ability Ratios 55
Asset Turnover Ratios 58
End Point 59

PART 2 ASSETS AND SOURCES OF CAPITAL

CHAPTER 5—BUILDING A BALANCE SHEET 63
Sizing Up Total Assets 63
Assets and Sources of Capital for Assets 66
Connecting Sales Revenue and Expenses with Operating Assets and Liabilities 69
Balance Sheet Tethered with Income Statement 75
End Point 76

CHAPTER 6—BUSINESS CAPITAL SOURCES 79
Business Example for This Chapter 80
Capital Structure of Business 81
Return on Investment 86
Pivotal Role of Income Tax 89
Return on Equity (ROE) 91

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