ABSTRACT
This chapter explores the structure of the balance sheet, statement of stockholder’s equity, income statement, and the statement of cash flows. The analysis of financial statements is the basic starting point for a successful business operation and to understanding the financial strength or weakness of any company. The balance sheet provides an overall financial snapshot of a company’s asset, liabilities, and net worth at a given point in time. Treasury stock is a kind of stock that is that has been bought back by the issuing corporation, and has been kept in its own treasury. Earnings per share represent the wealth generated for stockholders and are the key measurement by which the financial community assesses the company. A share of common stock represents a portion of ownership in the airline that issues it, and its price goes up or down for a number of reasons, but particularly reflecting the company’s current and expected financial performance.
