What are investors looking for when they review the Annual Report, and examine the Statement of Cash Flows?
Of course, as we discussed earlier, significant changes in the totals for investing or financing activities would indicate that there are either capital improvements, or a need to pay investor dividends; either situation would at first glance look appealing. However, examination of the notes that accompany the statement should also shed light on the true meaning of the number changes. Be wary of these notes, read them and cross reference them to the other statements included in the annual report. Also, read the Annual report. There is information within the report that might also give indication as to the true state of the financial health. Net earnings figures in the operating activities information are hard to dispute; either the business was profitable, or it was not. The second item of worth to the investor has to do with the type of investments the company has made. If there are significant changes in the net cash provided by investing activities, what types of investments are bei
