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| Preface | |
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| Financial Reporting Outside and Inside a Business | |
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| Getting Down to Business | |
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| Accounting Inside and Out | |
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| Internal Functions of Accounting | |
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| External Functions of Accounting | |
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| A Word about Accounting Methods | |
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| End Point | |
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| Introducing Financial Statements | |
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| Three Financial Imperatives, Three Financial Statements | |
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| Accrual-Basis Accounting | |
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| The Income Statement | |
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| The Balance Sheet | |
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| The Statement of Cash Flows | |
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| End Point | |
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| Reporting Profit to Managers | |
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| Using the External Income Statement for Decision-Making Analysis | |
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| Management Profit Report | |
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| Contribution Margin Analysis | |
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| End Point | |
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| Interpreting Financial Statements | |
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| A Few Observations and Cautions | |
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| Premises and Principles of Financial Statements | |
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| Limits of Discussion | |
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| Profit Ratios | |
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| Book Value Per Share | |
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| Earnings Per Share | |
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| Market Value Ratios | |
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| Debt-Paying-Ability Ratios | |
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| Asset Turnover Ratios | |
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| End Point | |
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| Assets and Sources of Capital | |
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| Building a Balance Sheet | |
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| Sizing Up Total Assets | |
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| Assets and Sources of Capital for Assets | |
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| Connecting Sales Revenue and Expenses with Operating Assets and Liabilities | |
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| Balance Sheet Tethered with Income Statement | |
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| End Point | |
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| Business Capital Sources | |
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| Business Example for This Chapter | |
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| Capital Structure of Business | |
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| Return on Investment | |
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| Pivotal Role of Income Tax | |
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| Return on Equity (ROE) | |
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| Financial Leverage | |
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| End Point | |
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| Capital Needs of Growth | |
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| Profit Growth Plan | |
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| Planning Assets and Capital Growth | |
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| End Point | |
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| Profit and Cash Flow Analysis | |
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| Breaking Even and Making Profit | |
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| Adding Information in the Management Profit Report | |
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| Fixed Operating Expenses | |
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| Depreciation: A Special Kind of Fixed Cost | |
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| Interest Expense | |
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| Pathways to Profit | |
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| End Point | |
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| Sales Volume Changes | |
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| Three Ways of Making a $1 Million Profit | |
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| Selling More Units | |
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| Sales Volume Slippage | |
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| Fixed Costs and Sales Volume Changes | |
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| End Point | |
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| Sales Price and Cost Changes | |
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| Sales Price Changes | |
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| When Sales Prices Head South | |
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| Changes in Product Cost and Operating Expenses | |
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| End Point | |
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| Price/Volume Trade-Offs | |
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| Shaving Sales Prices to Boost Sales Volume | |
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| Volume Needed to Offset Sales Price Cut | |
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| Thinking in Reverse: Giving Up Sales Volume for Higher Sales Prices | |
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| End Point | |
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| Cost/Volume Trade-offs and Survival Analysis | |
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| Product Cost Increases: Which Kind? | |
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| Variable Cost Increases and Sales Volume | |
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| Better Product and Service Permitting Higher Sales Price | |
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| Lower Costs: The Good and Bad | |
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| Subtle and Not-So-Subtle Changes in Fixed Costs | |
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| Survival Analysis | |
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| End Point | |
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| Profit Gushes: Cash Flow Trickles? | |
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| Lessons from Chapter 2 | |
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| Cash Flow from Boosting Sales Volumes | |
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| Cash Flows across Different Product Lines | |
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| Cash Flow from Bumping Up Sales Prices | |
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| End Point | |
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| Capital Investment Analysis | |
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| Determining Investment Returns Needed | |
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| A Business as an Ongoing Investment Project | |
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| Cost of Capital | |
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| Short-Term and Long-Term Asset Investments | |
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| The Whole Business versus Singular Capital Investments | |
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| Capital Investment Example | |
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| Flexibility of a Spreadsheet Model | |
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| Leasing versus Buying Long-Term Assets | |
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| A Word on Capital Budgeting | |
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| End Point | |
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| Chapter Appendix | |
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| Discounting Investment Returns Expected | |
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| Time Value of Money and Cost of Capital | |
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| Back to the Future: Discounting Investment Returns | |
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| Spreadsheets versus Equations | |
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| Discounted Cash Flow (DCF) | |
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| Net Present Value and Internal Rate of Return (IRR) | |
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| After-Tax Cost-of-Capital Rate | |
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| Regarding Cost-of-Capital Factors | |
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| End Point | |
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| End Topics | |
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| Service Businesses | |
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| Financial Statement Differences of Service Businesses | |
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| Management Profit Report for a Service Business | |
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| Sales Price and Volume Changes | |
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| What about Fixed Costs? | |
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| Trade-off Decisions | |
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| End Point | |
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| Management Control | |
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| Follow-through on Decisions | |
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| Management Control Information | |
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| Internal Accounting Controls | |
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| Independent Audits and Internal Auditing | |
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| Fraud | |
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| Management Control Reporting Guidelines | |
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| Sales Mix Analysis and Allocation of Fixed Costs | |
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| Budgeting Overview | |
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| End Point | |
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| Manufacturing Accounting | |
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| Product Makers versus Product Resellers | |
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| Manufacturing Business Example | |
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| Misclassification of Manufacturing Costs | |
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| Idle Production Capacity | |
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| Manufacturing Inefficiencies | |
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| Excessive Production | |
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| End Point | |
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| Glossary for Managers | |
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| Topical Guide to Figures | |
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| Index | |