Cover image for Harvard business essentials. Finance for managers.
Harvard business essentials. Finance for managers.
Publication Information:
Boston, Mass. : Harvard Business School Press, [2002]

Physical Description:
xii, 210 pages ; 24 cm.
Introduction. Financial statements -- Finding meaning in financial statements -- Important accounting concepts -- Taxes -- Financing operations and growth -- Money and capital markets -- Budgeting -- Practical tools for management decisions -- The time value of money -- Valuation concepts.
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HG4026 .F494 2002 Adult Non-Fiction Non-Fiction Area

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Harvard Business Essentials are comprehensive, solution-oriented paperbacks for business readers of all levels of experience. Calculating and assessing the overall financial health of the business is an important part of any managerial position. From reading and deciphering financial statements, to understanding net present value, to calculating return on investment, Finance for Managers provides the fundamentals of financial literacy. Easy to use and nontechnical, this helpful guide gives managers the smart advice they need to increase their impact on financial planning, budgeting, and forecasting.

Table of Contents

Introductionp. ix
1 Financial Statements: The Elements of Managerial Financep. 1
Why Financial Statements?p. 2
The Balance Sheetp. 3
The Income Statementp. 11
The Cash Flow Statementp. 14
Where to Find Itp. 18
Summing Upp. 19
2 Finding Meaning in Financial Statements: A Look behind the Numbersp. 21
Ratio Analysisp. 22
Percentage-Format Financial Statementsp. 30
From Financial Measures to a Balanced Scorecardp. 31
Summing Upp. 34
3 Important Accounting Concepts: The Rules That Shape Financial Statementsp. 37
Generally Accepted Accounting Principlesp. 38
Accrual versus Cash Accountingp. 39
Accounting for Inventoryp. 40
Depreciationp. 46
Accounting for Leasesp. 51
Historic Cost and Its Implicationsp. 54
Cost Accountingp. 55
Summing Upp. 59
4 Taxes: Important Details You Should Knowp. 61
Taxes and the Legal Form of the Businessp. 63
Progressive Tax Ratesp. 69
Marginal Tax Ratep. 71
Credits versus Deductionsp. 72
Tax Loss Carryback and Carryforwardp. 73
Summing Upp. 73
5 Financing Operations and Growth: Funding the Different Stages of Growthp. 75
Start-Up Financingp. 76
Financing Growthp. 80
Other Forms of External Financingp. 85
The Matching of Assets and Financingp. 86
A Life-Cycle View of Financingp. 88
Summing Upp. 93
6 Money and Capital Markets: Another Option for Funding Growthp. 95
Money Marketsp. 97
Capital Marketsp. 98
Capital Market Securitiesp. 103
Summing Upp. 107
7 Budgeting: Forecasting Your Company's Financial Futurep. 109
What Is Budgeting?p. 111
Budget Functionsp. 111
Types of Budgetsp. 115
The Master Budgetp. 118
The Human Side of Budgetingp. 128
Summing Upp. 135
8 Practical Tools for Management Decisions: Making the Numbers Work for Youp. 137
Cost/Benefit Analysisp. 138
Accounting Return on Investmentp. 140
Payback Periodp. 141
Breakeven Analysisp. 142
Estimating Nonquantifiable Benefits and Costsp. 146
Tracking Performancep. 146
Summing Upp. 147
9 The Time Value of Money: Calculating the Real Value of Your Investmentp. 149
What Is Time Value?p. 150
Net Present Valuep. 153
Internal Rate of Returnp. 162
Sensitivity Analysisp. 165
Economic Value Addedp. 167
Summing Upp. 169
10 Valuation Concepts: Evaluating Opportunityp. 171
Asset-Based Valuationsp. 174
Earnings-Based Valuationp. 177
Discounted Cash Flow Methodp. 181
Summing Upp. 184
Appendix Activity-Based Budgetingp. 185
Notesp. 189
Glossaryp. 191
For Further Readingp. 200
Indexp. 203
About the Subject Adviserp. 209
About the Writerp. 210