"Accounting is too much for me." To you, who's about to close the book after just three pages, I have some good news to share.
The 'accounting equation' you will learn from now on is the whole of accounting.
If you know just this word, you know half of accounting.
But there is also bad news.
The fact is that you must 'completely' understand this accounting equation.
'I can see your heart~ Om mani bam mi om.' Just like Gung Ye (a character in the drama 'Taejo Wang Geon'), who had no eyes but could see through people's hearts, if you know the accounting equation, you can see through accounting.
--- p.25 From "Master Key to Financial Statements at a Glance, Accounting Equation"

Financial statements consist of five types of tables.
The financial statements are the statement of financial position, income statement, statement of changes in equity, statement of cash flows, and notes in a separate appendix.
Don't be intimidated or nervous by difficult explanations.
Do you know the four kings of Hong Kong acting? They were Aaron Kwok, Andy Lau, Jacky Cheung, and Leung Ming, who dominated the film industry in the 1990s.
There are also four heavenly kings in financial statements.
Balance sheet, income statement, statement of changes in equity, and statement of cash flows.
And there is a chief secretary who serves the four heavenly kings.
Then, let’s look at them one by one.
--- p.47 From “All the secrets of a company are contained in its financial statements”

When economic crises such as the foreign exchange crisis, global financial crisis, and COVID-19 occur, we often see companies experiencing liquidity crises.
If the company lacks cash or liquid assets that can be converted into cash at this time, the company may go bankrupt.
Because I have a debt that needs to be paid right now, but I can't pay it off.
If there is no debt, the company will not fail.
But most companies are in debt.
However, even if you have debt, you should have plenty of liquid assets.
Current assets are the shiny assets that cover debt.
By looking at current assets, you can predict whether a company will go bankrupt or not.
Let's look at the financial statements of The Born Korea, managed by Baek Jong-won.
--- p.69~70 From "When you're wondering whether this company will go bankrupt or not, look at current assets"

When we receive our salary, we usually use it for living expenses and leave the remaining money in a bank account or put it in a savings account to earn interest.
More proactive people invest in stocks or bonds, or subscribe to financial products such as pension savings.
These days, people also invest in cryptocurrencies like Bitcoin.
If you have saved a lot of money, you can try to become a landlord by purchasing a commercial building and generating rental income.
The same goes for companies.
Invest in stocks or bonds, and purchase buildings to generate rental income.
The company's investment assets include deposits, savings, stocks, bonds, and financial products.
However, it is not easy to find investment assets on the financial statements.
It was hidden tightly like a treasure hunt.
--- p.93~94 From “Investment Assets are the Company’s Investment Returns”

What about Kakao, the IT company that has devoured every chat app in Korea and is still hungry for more, indiscriminately absorbing all platforms, both online and offline? Kakao, too, is steadily increasing its cash flow from operating activities.
Cash flow from investing activities is increasing and decreasing, and cash flow from financing activities is also (+).
It shows the cash flow pattern of a rapidly growing company.
It goes without saying that a company with poor financial health is a company whose operating account starts with a minus (-).
Let's look at the cash flow of Asana Airlines, which was acquired by Korean Air due to deteriorating management.
Even considering that 2020 was a difficult year for business operations due to the impact of COVID-19, we can see that cash flow from operating activities has been declining since 2019, before the COVID-19 outbreak.

--- p.231~232 from "Complete Mastery of Cash Flow Pattern Analysis"

When you search for Samsung Electronics, the price-to-earnings ratio (PER) appears on the right. There are two types: PER and estimated PER. The PER is calculated based on the company's actual performance, while the estimated PER is calculated based on the company's performance as estimated by the securities firm.
Looking at Samsung Electronics' PER, it is 24.49 times.
This means that if you invest in Samsung Electronics, you can recover your principal in 24 to 25 years.
The expected return is 4.08%. Multiply the reciprocal of the PER [1/24.49 = 0.0408] by 100.
How does it compare to current interest rates? Now you can compare expected returns and interest rates to make investment decisions.

--- p.267 From "The Secret Weapons of Corporate Value Evaluation, PER and PBR"