Reading Financial Reports for Dummies (62 page)

loans, 233

trading, 82, 341

Social Security taxes, 57

Securities and Exchange Act (1934), 33

sole proprietorships, 21–23, 341

Securities and Exchange Commission.

solvency, 181–185, 341

See
SEC (Securities and Exchange

SoRIE (statement of recognized income

Commission)

and expense), 264

securitization program, 230–231

S&P 500, 275

security holders, 249, 256–258

specifi c disclosures, by auditors, 70–71

segment breakdowns, 134

specifi c identifi cation inventory tracking

segment reporting, 148

system, 83, 207

sell rating, as rare, 276

speculative category, for bond ratings, 276

selling and administrative expense

Spitzer, Eliot (NY attorney general), 272

budgets, 200

Standard & Poor’s (S&P), 274–276

selling expenses, 101

standard auditors’ report, 69

sell-side analysts, 271–273

statement of cash fl ows

senior convertible debentures, 128

in an annual report, 72

service fees, upfront, 303

analyzing, 181

servicing rights, of receivables, 230

in annual reports, 19

shareholder groups, 283–284

bottom line, 118–119

shareholders

defi ned, 341

annual reports to, 17–19

described, 107–108, 314–316

companies communicating with, 281–294

IFRS compared to GAAP, 265

compared to security holders, 256

parts of, 108

matters voted on, 250

in quarterly reports, 13

meetings with, 282

questions answered by, 108

negotiating with unhappy, 285–286

special line items on, 117–118

360
Reading Financial Reports For Dummies, 2nd Edition
statement of changes in shareholder’s

“Summary of signifi cant accounting

equity, 264

policies,” 122–123

statement of fi nancial position.
See
balance

Sunbeam, 323

sheets

Swartz, Mark (Tyco CFO), 323

statement of operating results.
See
income

statements

• T •

statement of operations.
See
income

statements

takeover defenses and protections, 284

statement of recognized income and

tangible assets, 49, 51–53, 341

expense (SoRIE), 264

target markets, 134

statement of shareholders’ equity, 64

tax liability account, 45, 341

statements of earnings.
See
income

taxes.
See also
IRS

statements

as an accounting game, 58

statutory consolidation, 145

as expenses, 102

statutory merger, 145

on one-time gains, 315

statutory reporting, more control over, 262

types of, 57

stock

10-K form.
See
Form 10-K

acquisition, 145–146

10-Q form.
See
Form 10-Q

buying back, 115–116

3/10 net 60, 225–226

of corporations, 25

time frame, for depreciation, 123–124

described, 89

Time Warner, 333

owned by management and related

Tobecksen, Bruce (Waste Management VP

stockholders, 252

of fi nance), 324

preferred, 340

tools, on the balance sheet, 85

pricing for an IPO, 40

top down approach, to budgeting, 196

tracking transactions by company

total asset turnover, 215–216

insiders, 258

Tracy, John A. (author)

types of, 89

Accounting For Dummies,
81

stock exchange, selecting, 40

trade fi nancing, 227

stock exchange listing, reporting, 255

trade sanctions, 134

stock incentives, 66, 341

trade secret, inventory costs as, 208

stock market index, 275

trading securities, 82, 341

stock offering, registering, 40

trailing P/E, 155

stock options, 106, 116

training, of CPAs, 238

stock ratings, 276–277

transparency, of annual reports, 262

stock splits, 287

trouble, signs of, 329–334

stock ticker, 279

2/10 net 30, 225–226

stock-based compensation, 66

Tyco, 323–324

stockholders, reporting to, 13–14

stock-option plans, 284, 341

• U •

stretching, accounts payable, 228

subledgers, 50

uncertainties, 70

subprime mortgages, 321

unconsolidated subsidiary, 86

subsidiaries, 37, 139–140, 145, 342

undervalued liabilities, 312–314, 332

Sullivan, Scott (WorldCom CFO), 322

Index

361

underwriting guarantee, 40

Web sites

undeveloped land, 311

BestCalls Web site, 278, 292

unfi lled orders, 198

Bizstats Web site, 213

unqualifi ed audit report, 69

of companies, 292–293

unrealized losses or gains, 82, 341

Edgar Web site, 15, 93, 247, 331

unsecured line of credit, 232

FASB (Financial Accounting Standards

unusual extraordinary items, 264

Board), 332

upfront service fees, 303

Hasbro, 2, 121

U.S. Financial Accounting Standards

of investment research fi rms, 274

Board.
See
FASB (Financial Accounting

investor relations sections of, 292, 331

Standards Board)

Mattel, 2, 121

“U.S. Return of Partnership Income” (IRS

VCall Web site, 278, 292

Form 1065), 23

Yahoo! Finance Web site, 155, 158, 248,

utility companies, dividend payout

258, 279

ratios, 162

weighted average, 154–155

wholly owned subsidiary, 145, 342

• V •

window dressing, 290–291

working capital, 79, 342

valuation, increasing reported, 311

work-in-process inventory, 99

value, events materially impacting, 287

WorldCom/MCI scandal, 322

value investing, 158

worldwide fi nancial standard, 259–267

variable costs, 100, 342

Wozniak, Steve (Apple founder), 34

VCall Web site, 278, 292

vehicles account, 53

• Y •

venture capitalist, 32, 342

venturers, 140

Yahoo! Finance Web site, 155, 158, 248,

volatility, of cash status, 16

258, 279

volume discounts, 98, 342

yearly reports.
See
annual reports

• W •

warrants, 106

Waste Management scandal, 324

Notes

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