How to Read a Balance Sheet

  • 2h 57m
  • Rick J. Makoujy, Jr.
  • McGraw-Hill
  • 2010

Crack the code of finance’s big mystery—the balance sheet

In these times of financial anxiety, the ability to keep track of a company’s finances is more important than ever, and you can’t do this without a firm grasp of the balance sheet.

Whether you’re a small-business owner, department manager, or individual investor or business student, How to Read a Balance Sheet provides the skills you need to make the wisest financial decisions possible. A critical but rarely used business tool for non-financial professionals, the balance sheet provides a snapshot of a company’s financial position at any single point in time.

How to Read a Balance Sheet demystifies the subject by explaining:

  • What a balance sheet is and how it is used to boost profits
  • Key components of the balance sheet, including cash, receivables, inventory, long-lived assets, accounts payable, accrued expenses, long-term debt, and equity
  • How these different elements relate to one another—and how to keep them under control
  • Formulas, tips, and examples that illustrate key concepts
  • Practical advice to maximize operating efficiencies through effective management

When you have a firm grasp of the balance sheet, you’re better armed to seize business opportunities and avoid financial pitfalls. How to Read a Balance Sheet opens a new door to top performance for any business professional.

About the Author

Rick J. Makoujy, Jr. is the author of the acclaimed 60-minute DVD and online financial literacy program, Accounting In An Hour, which has been successfully utilized by dozens of Fortune 500 companies as well as the U.S. Government. He currently performs turnaround and restructuring consulting for a variety of businesses. Previously, Rick worked in the Price Waterhouse Restructuring Practice and in various capacities on Wall Street. He also has extensive personal experience purchasing, improving and selling operating companies as well as real estate.

In this Book

  • Primer on the Balance Sheet and Income Statement
  • Assets
  • Liabilities
  • Equity
  • Basic Accounting Principles and Methods
  • Finance Concepts and Tools
  • Balance Sheet Utilization and Implications
  • Balance Sheet Abuses
  • Effective Balance Sheet Management Techniques
  • The Cash Flow Statement
  • Common Mistakes when Starting a Business
  • Financial Statement Analysis
  • Summary and Conclusions