ABSTRACT
Chapter 1 examines the accounting statements – i.e. the income statement, the balance sheet and cash flow statements – through the lens of corporate finance. It shows how the income statement is, in effect, a representation of both the operational and financial dimensions of a company. It also describes how the balance sheet should be read as being what a company has to make money with and where the financing comes from. This chapter is written in such a way as to help readers gain a quick understanding of these statements from the perspective of financial management.
