PREFACE

WHAT THIS BOOK IS ABOUT

This book is about financial intelligence—about knowing what the numbers really mean. It is written for entrepreneurs and company owners who need to understand exactly what is happening in their company from a financial perspective. It provides the financial knowledge you need to run your business more effectively.

In it, you’ll learn how to read the three major financial statements and how to interpret the information they contain. You’ll learn to calculate critical ratios and to understand what they are telling you. You’ll learn why your net cash in a given time period is not the same thing as profit, and why you need both profit and cash. You’ll learn to use return-on-investment (ROI) tools to analyze big purchases ...

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