How to Read a Financial Statement Author:Kenneth M. Lefkowitz Economic Education Bulletin Vol XXXIII No 11: a digest of financial statement basics in seven chapters. 1. Why Read a Financial Stetement (The Auditor's Report); 2. The Balance Sheet(Assets and Valuation, Types of Assets, Liabilities, Equity); 3. Analysis of the Balance Sheet (Ratio Analysis); 4. The Income Statement (Accrual Accounting, Earning... more »s per Share, Statements of Equity and Net Assets); 5. Analysis of the Income Statement (Profit Margins, Horizontal Analysis, Ratio Analysis, The Operating Cycle and Short-Term Solvency, Turnover, Efficiency, and Flexibility, Longterm Solvency, Leverage and Return on Investment, Shareholder Returns); 6. The Cash Flow Statement (Cash Flows from Operations, Cash Flows from Investing and Financing); 7. Analysis of the Cash Flow Statement (Earnings Quality and Operating Cash Flows, Solvency and Financing Cash Flows, Cash Flow Adequacy); Further Reading and Glossary.« less