How FC financing works for BIG, page-268

Quote: "There are numerous ways companies can fake cash"

Not in a 4C, which is simply a statement of cash in and cash out. Of course this has to be backed up by looking at the audited accounts, which records revenue - I did mention you have to look at both.

My take on looking at cash flow comes from an old investor that I read years ago. Something about when looking at a company for the first time, go to the back of the report and look at the cashflows. His reasoning being that looking at the flow of cash over time would highlight any discrepancies as it was difficult/impossible to fudge, whereas the revenue statements can be confusing. I can't remember where I read it.