Read Reading Financial Reports for Dummies Online
Authors: Lita Epstein
loans, 233
trading, 82, 341
Social Security taxes, 57
Securities and Exchange Act (1934), 33
sole proprietorships, 21–23, 341
Securities and Exchange Commission.
solvency, 181–185, 341
See
SEC (Securities and Exchange
SoRIE (statement of recognized income
Commission)
and expense), 264
securitization program, 230–231
S&P 500, 275
security holders, 249, 256–258
specifi c disclosures, by auditors, 70–71
segment breakdowns, 134
specifi c identifi cation inventory tracking
segment reporting, 148
system, 83, 207
sell rating, as rare, 276
speculative category, for bond ratings, 276
selling and administrative expense
Spitzer, Eliot (NY attorney general), 272
budgets, 200
Standard & Poor’s (S&P), 274–276
selling expenses, 101
standard auditors’ report, 69
sell-side analysts, 271–273
statement of cash fl ows
senior convertible debentures, 128
in an annual report, 72
service fees, upfront, 303
analyzing, 181
servicing rights, of receivables, 230
in annual reports, 19
shareholder groups, 283–284
bottom line, 118–119
shareholders
defi ned, 341
annual reports to, 17–19
described, 107–108, 314–316
companies communicating with, 281–294
IFRS compared to GAAP, 265
compared to security holders, 256
parts of, 108
matters voted on, 250
in quarterly reports, 13
meetings with, 282
questions answered by, 108
negotiating with unhappy, 285–286
special line items on, 117–118
360
Reading Financial Reports For Dummies, 2nd Edition
statement of changes in shareholder’s
“Summary of signifi cant accounting
equity, 264
policies,” 122–123
statement of fi nancial position.
See
balance
Sunbeam, 323
sheets
Swartz, Mark (Tyco CFO), 323
statement of operating results.
See
income
statements
• T •
statement of operations.
See
income
statements
takeover defenses and protections, 284
statement of recognized income and
tangible assets, 49, 51–53, 341
expense (SoRIE), 264
target markets, 134
statement of shareholders’ equity, 64
tax liability account, 45, 341
statements of earnings.
See
income
taxes.
See also
IRS
statements
as an accounting game, 58
statutory consolidation, 145
as expenses, 102
statutory merger, 145
on one-time gains, 315
statutory reporting, more control over, 262
types of, 57
stock
10-K form.
See
Form 10-K
acquisition, 145–146
10-Q form.
See
Form 10-Q
buying back, 115–116
3/10 net 60, 225–226
of corporations, 25
time frame, for depreciation, 123–124
described, 89
Time Warner, 333
owned by management and related
Tobecksen, Bruce (Waste Management VP
stockholders, 252
of fi nance), 324
preferred, 340
tools, on the balance sheet, 85
pricing for an IPO, 40
top down approach, to budgeting, 196
tracking transactions by company
total asset turnover, 215–216
insiders, 258
Tracy, John A. (author)
types of, 89
Accounting For Dummies,
81
stock exchange, selecting, 40
trade fi nancing, 227
stock exchange listing, reporting, 255
trade sanctions, 134
stock incentives, 66, 341
trade secret, inventory costs as, 208
stock market index, 275
trading securities, 82, 341
stock offering, registering, 40
trailing P/E, 155
stock options, 106, 116
training, of CPAs, 238
stock ratings, 276–277
transparency, of annual reports, 262
stock splits, 287
trouble, signs of, 329–334
stock ticker, 279
2/10 net 30, 225–226
stock-based compensation, 66
Tyco, 323–324
stockholders, reporting to, 13–14
stock-option plans, 284, 341
• U •
stretching, accounts payable, 228
subledgers, 50
uncertainties, 70
subprime mortgages, 321
unconsolidated subsidiary, 86
subsidiaries, 37, 139–140, 145, 342
undervalued liabilities, 312–314, 332
Sullivan, Scott (WorldCom CFO), 322
Index
361
underwriting guarantee, 40
Web sites
undeveloped land, 311
BestCalls Web site, 278, 292
unfi lled orders, 198
Bizstats Web site, 213
unqualifi ed audit report, 69
of companies, 292–293
unrealized losses or gains, 82, 341
Edgar Web site, 15, 93, 247, 331
unsecured line of credit, 232
FASB (Financial Accounting Standards
unusual extraordinary items, 264
Board), 332
upfront service fees, 303
Hasbro, 2, 121
U.S. Financial Accounting Standards
of investment research fi rms, 274
Board.
See
FASB (Financial Accounting
investor relations sections of, 292, 331
Standards Board)
Mattel, 2, 121
“U.S. Return of Partnership Income” (IRS
VCall Web site, 278, 292
Form 1065), 23
Yahoo! Finance Web site, 155, 158, 248,
utility companies, dividend payout
258, 279
ratios, 162
weighted average, 154–155
wholly owned subsidiary, 145, 342
• V •
window dressing, 290–291
working capital, 79, 342
valuation, increasing reported, 311
work-in-process inventory, 99
value, events materially impacting, 287
WorldCom/MCI scandal, 322
value investing, 158
worldwide fi nancial standard, 259–267
variable costs, 100, 342
Wozniak, Steve (Apple founder), 34
VCall Web site, 278, 292
vehicles account, 53
• Y •
venture capitalist, 32, 342
venturers, 140
Yahoo! Finance Web site, 155, 158, 248,
volatility, of cash status, 16
258, 279
volume discounts, 98, 342
yearly reports.
See
annual reports
• W •
warrants, 106
Waste Management scandal, 324
Notes
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