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Finance for Managers by Harvard Business School Press

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1

Financial Statements

The Elements of Managerial Finance

Key Topics Covered in This Chapter

  • Balance sheets
  • Income statements
  • Cash flow statements
  • Financial leverage
  • The financial structure of the firm

WHAT DOES YOUR COMPANY own, and what does it owe to others? What are its sources of revenue, and how has it spent its money? How much profit has it made? What is the state of your company’s financial health? This chapter will help you answer those questions by explaining the three essential financial statements: the balance sheet, the income statement, and the cash flow statement. The chapter will also help you understand some of the managerial issues implicit in these statements and broaden your financial know-how through discussion of two important ...

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