Preface

This book is a follow-up to Understanding Financial Statements: A Primer of Useful Information. It is written for someone who has a basic understanding of financial statements, knows the difference between cash and income, is familiar with the use of ratios, and can analyze expenses. These skills should be reviewed by either reading Understanding Financial Statements, taking a course in basic finance, or both.

The material and tools presented in this book should be reviewed several times. Go through the checklists and work the sample problems until you understand and feel comfortable with what is happening and why. Take it step-by-step; some of the concepts may be new, but with practice you will achieve a working relationship with each analytical tool. Your comprehension will help you know where and when to apply these tools and increase your understanding of the financial information available from corporations.

Good luck!

Moira E. Chatton

About the Authors

The late James O. Gill worked as Division Manager and Projects Manager with the Naval Weapons Support Center in Crane, Indiana. He was the author of Financial Basics of Small Business Success, Financial Analysis, and the first edition of Understanding Financial Statements, all published by Crisp Publications, Inc.

Moira E. Chatton has revised Financial Analysis as well as its companion book, Understanding Financial Statements. She earned a degree in biochemistry from the University of California, Berkeley, and an M.B.A. from the University of Georgia. Employed initially as a financial analyst by Chevron Chemical Company in San Francisco, she held a series of increasingly responsible and challenging positions in other Chevron companies. Since retiring from Chevron, Ms. Chatton provides in-house financial training to local businesses and teaches small business and finance courses at Santa Rosa Junior College and the University of Phoenix.