1. HOW TO READ FINANCIAL REPORTS

8. Your “debit” card . . .

9. Friendly Bank

11. Cash Flow Statement Net amount of cash taken into the business during a given period and the cash paid out during that same period.

14. Balance Sheet Two sides must balance

24. Shareholders’ equity Interest of shareholders in the company.

25. Retained earnings Money the company keeps for itself rather than being paid out in dividends to the shareholders.

26. If a company is insolvent and owes more than it owns . . . Equity will be a negative amount. Negative amounts are shown in ( )

27. Income Statement

29. Income statement Reports the results of operations over a specified period of time.

30. Income statement Summary of how much the business has taken in and paid out -- its profits.

33. Net income after taxes The bottom line

34. Dividend Distribution of earnings to shareholders.

37. Cash flow from operations Net income + depreciation

38. Amortization conversion of intangible long-lived assets into expenses over a number of accounting periods

40. Basic Financial Ratios (Balance Sheet Ratios) Percentages that provide understanding.

41. Vital Signs Or How to tell if a company is healthy. (Fundamental Analysis)

59. A few helpful terms.

62. INVESTMENT STRATEGIES