Want to get more out of financial reports? This entertaining story gives you a revealing look at the accounting standards that dictate how calculations are made, and the assumptions that can make a surprising difference to your bottom line.

Stanford Professor George Parker provides both line-by-line explanations of the three key financial statements used by US companies, and offers logical, common-sense approaches to interpreting what they reveal about profitability, value, and the ability to pay bills.

The Balance Sheet

• What does this company own?
• How much debt is it carrying?
• How much money have investors put in?

The Income Statement

• What is the sales volume?
• What kind of expense is the company incurring?
• How much money is the company earning?
• Which income figure should I look at: operating income, income before interest and taxes, or net income?

The Cash Flow Statement

• Will this company be able to pay its bills?
• Where's their cash flow coming from?

Follow along as Dr. George Parker tracks the progress of Jill and Perry, non-financial managers assigned to evaluate the financial statements of two restaurants their company has targeted for acquisition. Learn not just textbook definitions, but real world meanings and business consequences.