Invested: How I Learned to Master My Mind, My Fears, and My Money to Achieve Financial Freedom and Live a More Authentic Life (with a Little Help from Warren Buffett, Charlie Munger, and My Dad)

by Danielle Town

Dad calls them the Big Four Numbers: Big Four Numbers Number Which Financial Statement? Definition 1. Net Income (also called Net Profit or Net Earnings) Income Statement Profit after all costs of making that profit have been deducted 2. Book Value (also called Equity) + Dividends (if any) Book Value: Balance Sheet Dividends: Cash Flow Statement Value of the business if it were closed down and all its assets were sold (assets minus liabilities), before any dividends were paid out 3. Sales Income Statement Amount earned from selling (revenue) 4. Operating Cash Cash Flow Statement Actual cash received from business operations