The Essentials Of Finance And Accounting For Nonfinancial Managers

Outside of the accounting and finance departments, not many business people are interested in the finer points of financial reports. But every manager must have a thorough understanding of what their finance and accounting staffs do, why they do it, and what these reports really mean.This indispensable book demystifies the role that accounting and finance play in a corporation and demonstrates how financial decisions are manifestations of company goals. The author's crystal-clear examples show how managers can connect corporate financial information directly to their own strategies and actions. To demonstrate these connections, the author covers such essential topics as:\* Balance sheets and income/cash flow statements \* Reading and understanding annual reports \* Fixed-cost and variable-cost issues \* Financial analysis, budgeting and forecasting. Based on the bestselling AMA seminar, a nuts-and-bolts guide to the dollars-and-cents issues that drive your organization! As a department manager, the last thing you want to think about is numbers. But the truth is, thats the only thing your executives and senior managers are thinking about so its crucial to understand key financial information like balance sheets, income statements, cash flow statements, budgets and forecasts, and annual reports. With over 40,000 copies sold, The Essentials of Finance and Accounting for Nonfinancial Managers has long provided readers with insight into the financial fundamentals. It demystifies the role accounting and finance play in a corporation, demonstrates how financial decisions reflect business goals, and shows how managers can connect corporate financial information directly to their own strategies and actions. Now revised to reflect new accounting and financial standards, the second edition Strategies for getting your share of the budget New case studies and practice sessions An explanation of Sarbanes-Oxley and its relevance to nonfinancial managers How to manage cash flow in tough times Fraud detection tools An expanded glossary including up-to-the-minute business concepts and terminology And more "The Essentials of Finance and Accounting for Nonfinancial Managers provides answers for all general managers who need to gain an understanding of how financials are developed, what each commonly used term means, and why Generally Accepted Accounting Principles (GAAP) are so important to the company and to the accounting department. Filled with many practice examples, the book explains the vital concepts behind: the Balance Sheet, including assets, liabilities, and stockholders' equity; the Income Statement, including revenues, expenses, and profit; the Statement of Cash Flows, describing operations, financing, and investments; the Annual Report, and more.". "The book covers every concept necessary to improve the manager's understanding of the company's financials, including how to analyze financial statements, using ratios to analyze the performance of profit centers, and the development and analysis of cost information. It goes on to explain return on investment, using discounted cash flow techniques, debt and equity financing, using break-even analysis for increased profitability, and analyzing supply chain and outsourcing opportunities."--BOOK JACKET. ESSENTIALS OF FINANCE AND ACCOUNTING FOR NONFINANCIAL MANAGERS 2 Copyrights 5 Contents 6 Introduction 8 Part 1 UNDERSTANDING FINANCIAL INFORMATION 20 Chapter 1 The Balance Sheet 22 Chapter 2 The Income Statement 45 Chapter 3 The Statement of Cash Flows 50 Chapter 4 Generally Accepted Accounting Principles: A Review 58 Chapter 5 The Annual Report and Other Sources of Incredibly Valuable Information 62 Part 2 ANALYSIS OF FINANCIAL STATEMENTS 84 Chapter 6 Key Financial Ratios 86 Chapter 7 Using Return on Assets to Measure Profit Centers 112 Chapter 8 Overhead Allocations 123 Part 3 DECISIONMAKING FOR IMPROVED PROFITABILITY 134 Chapter 9 Analysis of Business Profitability 136 Chapter 10 Return on Investment 156 Part 4 ADDITIONAL FINANCIAL INFORMATION 186 Chapter 11 Financing the Business 188 Chapter 12 Business Planning and the Budget 203 Chapter 13 Selected Business Readings 215 Appendix A Financial Statement Practice 226 Appendix A Answer Key 230 Appendix B Matching Exercise 233 Appendix B Answer Key 238 Appendix C 243 Appendix C Answer Key 248 Appendix D Matching Exercise 252 Appendix D Answer Key 254 Glossary 258 Index 290 Keeping math to a minimum, this guide for managers in sales, marketing, operations, and human resources explains how to understand and use financial information and provides an overview and detailed breakdown of key financial statements. The guide shows how to analyze and apply financial data to measure a company's performance and make sound strategic and operational decisions. Generally Accepted Accounting Principles are also covered. Exercises and a 30-page glossary are included. Fields is a consultant on financial issues By understanding what accounting and finance departments do -- and why -- managers are better equipped to achieve corporate goals.