What are some of the vital information is missing

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Question: In a world where most financial statements are done using accrual accounting methods it's nice to review the ins and outs of cash for a company. One of the things I enjoy the most in a statement of cash flows is that you can see how a company primarily earns its income, for instance a retail company may not be considered successful if most of their income doesn't come from operations. Additionally, a statement of cash flows shows changes in inventory values. The cash statement also shows income from financing and investing activities which may not be as apparent in the ornery financial statements.

The question I want to ask is about the negatives of the statement of cash flows; what are some of the vital information that this statement is missing that investor's need?

Reference no: EM132087150

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