Doug and Jim discuss how to understand the difference between cash and accounting, as well as how to understand the financial statement which has a number of different names, such as an operating statement, a P&L, and income statement. Teaching people to understand how to read financial statements on the radio may never have been attempted before. Jim and Doug are professionals, don't try this at home.

Gary joins Jim to talk about whether inflation is ending, and if deflation is emerging to replace inflation's place in the marketplace. They discuss how inflation has impacted our marketplace over the past 30 years, how certain sectors of the marketplace are currently in a deflationary period, and a number of deflationary forces Gary identifies in his book.

Doug and Jim continue their discussion of how to read and understand financial statements, and this visit is focused on the Operating Statement, with emphasis on the gross profit, the difference between margin and mark-up, and the relationship between gross profit and overhead expense.

Doug and Jim continue their series on how to read and understand your financial statements, with emphasis on the items typically found at bottom of the operating statement, such as other income and expenses like sale of assets, provision for taxes, and what to do with financial odds and ends on your operating statement. They move on to discuss how the Balance Sheet functions, plus how it connects to the operating statement.

Doug and Jim begin by emphasizing the importance of regular financial statements, including the availability of in-house accounting software, and the importance of having at least a periodic review by a CPA. They finish their discussion by talking about the difference between accrual accounting and cash accounting.