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Subject:  Reading Financial Statments FAQ v. 0.2... Date:  5/24/2000  2:07 AM
Author:  jmls Number:  1098 of 3964

Dear y'all,

This is my second attempt at a FAQ for this board. I've tried to address the previous round of suggestions, and have separately posted the income statement, balance sheet and cash flow statements. Thanks to RooCat, wallstgal and blackmare for helpful suggestions. I shall request a link to this "for lack of anything better", as well as not knowing the next time the spirit will move me :)

I have not actually come up yet with a glossary, this shall have to wait for the next edition :) Certainly suggestions on what to cover there would be useful.

As always, more suggestions are appreciated, either on the boards or Emailed directly to me.

Lleweilun Smith

1. Q. This financial stuff sounds scary. Why should I bother?
2. Q. What information is available on publically traded companies?
Where can I find it?

3. Q. What information is available in these reports?
4. Q. What are the main sections in the financial sections?
5. Q. What is "accrual" vs. "cash" accounting?
6. Q. What is the format of the income statement?
7. Q. What is the format of the "cash flow" statement?
8. Q. What is the format of a balance sheet?
9. Q. Where may I read more about this stuff?

1. Q. This financial stuff sounds scary. Why should I bother?

A. When one buys a share of a company, one is buying min