A practical approach for entrepreneurs and investors Entrepreneurial Finance provides readers with the fundamental knowledge to finance, start, grow, and value new ventures, without the complex finance terms and calculations. This comprehensive yet practical approach incorporates a global perspective that appeals to entrepreneurs, investors, and students with diverse backgrounds, knowledge, and experience. From Facebook to Camera+, Gary Gibbons, Robert D. Hisrich, and Carlos M. DaSilva use real-world examples and their professional experiences to bring concepts to life. This text is one of the most readable books in the market without compromising high quality content and resources.
Chapter 3: Understanding Financial Documents
Understanding Financial Documents
- To foster an understanding of how financial documents are used in entrepreneurial ventures
- To analyze the components of the basic accounting equation
- To understand the logic of an income statement
- To understand the relevance of the statement of cash flow
Case: Hostess Brands LLC
Little did the founders of the Continental Baking Company know in the 1920s that the company would go through two bankruptcy proceedings by 2013. Through a series of mergers, the company at one time was the largest commercial bakery in the United States, with its Wonder Bread and Hostess cake products becoming Hostess Brands LLC in 1930.
[Page 32]Despite having multiple owners, including International Telephone and Telegraph, Interstate Bakeries Corporation, Ralston Purina, Ripplewood Holdings, Silver Point Capital, Monarch Alternative Capital, ...