Part II

Checking Out the Big Show: Annual Reports

Find more on the best web sources for financial report research at www.dummies.com/extras/readingfinancialreports.

In this part…

• Discover the parts of an annual report and look at how to summarize financial information.
• Check out assets, liabilities, and equity, and see how to review and examine them to keep things in balance.
• Understand how to use income statements to determine whether a company has made a profit.
• Look at statements of cash flows to determine whether the company has enough cash to operate.
• Read behind the numbers and scour financial reports for red flags.
• Understand consolidated financial statements and look at ways companies buy other companies.