Understanding Cashflow Shenanigans (Part-3)
Understanding the details of Cashflow Shenanigans (Part-3) Shuchi. P. Nahar Link to Part-1: https://myweekendspot.blogspot.com/2020/01/catch-trend-its-all-about.html Link to Part-2: https://myweekendspot.blogspot.com/2020/01/checklist-to-understand-recording-of.html This blog is in the series of my previous three blogs. This blog will help an individual to understand the manipulation done in cash flow statement and help an investor to analyze the statements and be wary of cash flow shenanigans. With so many recent financial frauds going undetected, investors are increasingly questioning the value of the accrual-based figures shown on the Statement of Income. Time and time again, companies have duped investors by recording revenue too soon or hiding expenses. Some sophisticated investors claim that they realize that earnings can be manipulated and therefore put more faith in the “purer” cash flow from operations. While that’s certainly a step in the right direction, ...