{"product_id":"balance-sheet-basics-isbn-9781591840527","title":"Balance Sheet Basics","description":"The balance sheet is the most basic tool of financial management, yet to most of today's nonfinancial managers it is a complete mystery. In Balance Sheet Basics, Ronald Spurga takes you step by step through the balance sheet to explain not only the line items and what they mean, but also how to interpret ratios derived form the balance sheet, providing an indispensable road map to good financial management. More importantly, you'll find page after page of information that will show you how to improve your 401(k), invest successfully, and increase your net worth.Balance Sheet Basics\u003ci\u003ePreface\u003c\/i\u003e\u003cbr\u003e\u003cp\u003e\u003cb\u003e1. What is Financial Management?\u003c\/b\u003e\u003cbr\u003eGetting the Financial Resources You Need\u003cbr\u003eMaking a Profit-Your Basic Obligation\u003cbr\u003eManaging Assets\u003cbr\u003eThe Tools of Financial Management\u003cbr\u003e\u003ci\u003eAccounting records\u003cbr\u003eFinancial reports\u003cbr\u003eTechniques for analyzing financial statements\u003c\/i\u003e\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e2. Financial Statements\u003c\/b\u003e\u003cbr\u003eThe Balance Sheet\u003cbr\u003eAssets\u003cbr\u003e\u003ci\u003eCurrent assets\u003cbr\u003eFixed Assets\u003cbr\u003e\"Other\" Assets\u003c\/i\u003e\u003cbr\u003eLiabilities\u003cbr\u003eEquity\u003cbr\u003eValuation accounts\u003cbr\u003e\u003ci\u003eAccounts recievable\u003cbr\u003eLosses in the value of inventions\u003cbr\u003eFixed assets\u003c\/i\u003e\u003cbr\u003eSome Examples\u003cbr\u003eThe Profit-and-Loss Statement: A Retailer of Wholesaler\u003cbr\u003eSales\u003cbr\u003eCost of goods sold\u003cbr\u003eSelling Expenses\u003cbr\u003eGeneral and administrative expenses\u003cbr\u003eNonoperating income\u003cbr\u003eProfit-and-Loss Statement of a Small Manufacturer\u003cbr\u003e\u003ci\u003eRaw materials\u003cbr\u003eDirect labor\u003cbr\u003eManufacturing overhead\u003c\/i\u003e\u003cbr\u003eInterpreting the Profit-and-Loss Statement\u003cbr\u003eUse With Caution!\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e3. Ratio Analysis of Financial Statements\u003c\/b\u003e\u003cbr\u003e\u003ci\u003eBusinesses are not exactly comparable\u003cbr\u003eRatios are computed for specific dates\u003cbr\u003eFinancial statements show what has happened in the past\u003cbr\u003eThe ratios are not ends in themselves\u003c\/i\u003e\u003cbr\u003eMeasure of Liguidity\u003cbr\u003eThe current ratio\u003cbr\u003eWorking capital\u003cbr\u003eThe acid-test ratio\u003cbr\u003eAverage collection period\u003cbr\u003eInventory turnover\u003cbr\u003eMeasures of Profitablity\u003cbr\u003eAsset earning power\u003cbr\u003eReturn on the owner's equity\u003cbr\u003eNet profit on sales\u003cbr\u003eInvestment turnover\u003cbr\u003eReturn on investment (ROI)\u003cbr\u003eCommon-size Financial Statements\u003cbr\u003eUsing the Ratios\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e4. Control in Business Managemen\u003c\/b\u003e\u003cbr\u003eSuccess or Failure Relates to How Management Manages\u003cbr\u003eThose Who Succeed\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003eBusiness Ratios and How They Work\u003c\/b\u003e\u003cbr\u003eStatements Reveal Important Relationships\u003cbr\u003eThree Kinds of Ratios\u003cbr\u003eTen Key Ratios\u003cbr\u003e\u003ci\u003e1. Current assets to current liabilities\u003cbr\u003e2. Current liabilities to tangible net worth\u003cbr\u003e3. Net sales to tangible net worth\u003cbr\u003e4. Net sales to working capital\u003cbr\u003e5. Net profits to tangible net worth\u003cbr\u003e6. Average collection period of receivables\u003cbr\u003e7. Net sales to inventory\u003cbr\u003e8. Fixed assets to tangible net worth\u003cbr\u003e9. Total debt to tangible net worth\u003cbr\u003e10. Net profit on net sales\u003c\/i\u003e\u003cbr\u003eAnalyzing the Profit-and-Loss (Income)\u003cbr\u003eStatement\u003cbr\u003e\u003ci\u003eNet sales\u003cbr\u003eCost of goods sold\u003cbr\u003eGross profit on sales\u003cbr\u003eSelling expenses\u003cbr\u003eOperating profit\u003cbr\u003eGeneral and administrative expenses\u003cbr\u003eFinancial expenses\u003cbr\u003eOther operating expenses and income\u003cbr\u003eExtraordinary charges (if any)\u003cbr\u003eNet profit before taxes\u003cbr\u003eTaxes\u003cbr\u003eNet profit after taxes\u003c\/i\u003e\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e6. Standard or Typical Ratios\u003c\/b\u003e\u003cbr\u003eNeed for Measurements\u003cbr\u003eGrowth of Standard Ratio Studies\u003cbr\u003eSampling the Field\u003cbr\u003eObtaining the Figures\u003cbr\u003eAssembling the Results\u003cbr\u003eOperating Ratios vs. Financial Ratios\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e7. Ratio Analysis in Action: A Case History\u003c\/b\u003e\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e8. Evaluating and Interpreting Ratios\u003c\/b\u003e\u003cbr\u003eThe Point of View\u003cbr\u003eInterpreting Operating Ratios\u003cbr\u003eCost of Goods Sold and Gross Margin\u003cbr\u003eOperating Expenses\u003cbr\u003eWages and salaries\u003cbr\u003eOwner's compensation\u003cbr\u003eAdvertising cost\u003cbr\u003eOccupancy cost\u003cbr\u003eBad debt costs\u003cbr\u003eInterpreting Balance-Sheet Ratios\u003cbr\u003eCurrent Assets to Current Liabilities\u003cbr\u003eLiabilities to Tangible Net Worth\u003cbr\u003eTurnover of Tangible Net Worth and Working Capital\u003cbr\u003eNet Profits on Tangible Net Worth\u003cbr\u003eAverage Collection Period\u003cbr\u003eInventory Turnover\u003cbr\u003eFixed Assets to Tangible Net Worth\u003cbr\u003eManagement Judgement Necessary\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e9. Looking Ahead\u003c\/b\u003e\u003cbr\u003eThe Cash Budget\u003cbr\u003eHow to do it\u003cbr\u003e\u003ci\u003eThe cash balance-how much is enough?\u003cbr\u003eIf you need funds-what kind?\u003c\/i\u003e\u003cbr\u003eProjected Financial Statements\u003cbr\u003eThe projected profit-and-loss statement\u003cbr\u003eThe projected balance sheet\u003cbr\u003e\u003ci\u003eThe cash figure\u003cbr\u003ethe receivables and inventory accounts\u003cbr\u003eFixed assets\u003cbr\u003eAccrued liabilities and long-term debts\u003cbr\u003eThe accounts payable figure\u003cbr\u003eThe equity account\u003c\/i\u003e\u003cbr\u003ePoints to Remember\u003cbr\u003eLooking Still Further Ahead\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e10. The Different Types of Financing\u003cbr\u003eEquity Capital\u003cbr\u003eWorking Capital\u003cbr\u003eGrowth Capital\u003cbr\u003eSBA Loans\u003cbr\u003eSBICs and Other Venture Capital Sources\u003cbr\u003eWhen to Turn to Venture Capitalists\u003cbr\u003e\u003c\/b\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e11. Unsecured Borrowings for Working Capital\u003c\/b\u003e\u003cbr\u003e\"The Annual Clean-Up\"\u003cbr\u003ePutting Your Best Foot Forward\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e12. Secured Working Capital Financing\u003c\/b\u003e\u003cbr\u003eAccounts Receivable Financing\u003cbr\u003eFactoring\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e13. Secured Growth Capital Financing\u003c\/b\u003e\u003cbr\u003eLeasing\u003cbr\u003eConditional Sales Purchases\u003cbr\u003eSale Leasebacks\u003cbr\u003ePulling the Various Elements Together\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003e14. For Further Information\u003c\/b\u003e\u003cbr\u003eSources of Industry Ratio Data\u003cbr\u003eU.S. Government Publications\u003cbr\u003eBooks\u003cbr\u003e\u003c\/p\u003e\u003cp\u003e\u003ci\u003eAppendix\u003cbr\u003e\u003c\/i\u003e\u003c\/p\u003e\u003cp\u003eIndex\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cb\u003eRonald C. Spurga\u003c\/b\u003e, CFP, has worked as an investment banker and Wall Street analyst for several decades. He received his graduate degree from Dartmouth College and taught at Rutgers University, Fordham University, and New York University.","brand":"Portfolio","offers":[{"title":"Default Title","offer_id":46302978998501,"sku":"NP9781591840527","price":24.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781591840527_3d3c0ed1-6694-4980-92a0-e0e79e48e29c.jpg?v=1767722131","url":"https:\/\/k12savings.com\/es\/products\/balance-sheet-basics-isbn-9781591840527","provider":"K12savings","version":"1.0","type":"link"}