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Preface: What Is Financial Intelligence? | |
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The Art of Finance (And Why It Matters) | |
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You Can't Always Trust the Numbers | |
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Spotting Assumptions, Estimates, and Biases | |
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Why Increase Your Financial Intelligence? | |
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The Rules Accountants Follow-and Why You Don't Always Have To | |
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Toolbox: Getting What You Want; The Players and What They Do; Reporting Obligations of Public Companies | |
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The (Many) Peculiarities of the Income Statement | |
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Profit Is an Estimate | |
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Cracking the Code of the Income Statement | |
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Revenue: The Issue Is Recognition | |
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Costs and Expenses: No Hard-and-Fast Rules | |
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The Many Forms of Profit | |
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Toolbox: Understanding Variance; Profit at Nonprofits; A Quick Review: "Percent of" and "Percent Change" | |
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The Balance Sheet Reveals the Most | |
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Understanding Balance Sheet Basics | |
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Assets: More Estimates and Assumptions (Except for Cash) | |
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On the Other Side: Liabilities and Equity | |
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Why the Balance Sheet Balances | |
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The Income Statement Affects the Balance Sheet | |
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Toolbox: Expense? Or Capital Expenditure?; The Impact of Mark-to-Market Accounting | |
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Cash Is King | |
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Cash Is a Reality Check | |
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Profit ≠ Cash (and You Need Both) | |
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The Language of Cash Flow | |
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How Cash Connects with Everything Else | |
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Why Cash Matters | |
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Toolbox: Free Cash Flow; Even the Big Guys Can Run Out of Cash | |
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Ratios: Learning What the Numbers are Really Telling You | |
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The Power of Ratios | |
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Profitability Ratios: The Higher the Better (Mostly) | |
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Leverage Ratios: The Balancing Act | |
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Liquidity Ratios: Can We Pay Our Bills? | |
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Efficiency Ratios: Making the Most of Your Assets | |
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The Investor's Perspective: The "Big Five" Numbers and Shareholder Value | |
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Toolbox: Which Ratios Are Most Important to Your Business?; The Power of Percent of Sales; Ratio Relationships; Different Companies, Different Calculations | |
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How To Calculate (And Really Understand) Return on Investment | |
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The Building Blocks of ROI | |
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Figuring ROI: The Nitty-Gritty | |
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Toolbox: A Step-by-Step Guide to Analyzing Capital Expenditures; Calculating the Cost of Capital; Economic Value Added and Economic Profit-Putting It All Together | |
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Applied Financial Intelligence: Working Capital Management | |
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The Magic of Managing the Balance Sheet | |
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Your Balance Sheet Levers | |
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Homing In on Cash Conversion | |
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Toolbox: Accounts Receivable Aging | |
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Creating a Financially Intelligent Company | |
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Financial Literacy and Corporate Performance | |
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Financial Literacy Strategies | |
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Financial Transparency: Our Ultimate Goal | |
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Toolbox: Understanding Sarbanes-Oxley | |
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Appendix: Sample Financials | |
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Notes | |
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Acknowledgments | |
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Index | |
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About the Authors | |