Chapter 5 Financial Reporting Formulas: The Balance Sheet

The two primary financial statements used in business are the balance sheet and the income statement. This chapter explains how the balance sheet is put together and provides formulas for the most useful balance sheet ratios.

Even managers who have not had accounting education can master the short list of calculations that reveal the status and financial condition of a business. You do not need to get involved with a highly technical level of analysis; however, you do need to know about one dozen formulas that can be applied and compared between companies or over time.

Balance Sheet Basics

The balance sheet gets its name from two of its most important features. First, this report contains ...

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