Assume that you just inherited $1 million. You are aware that numerous studies have shown that investments in equity securities (stocks) give the highest rate of return over the long run.
Assume that you just inherited $1 million. You are aware that numerous studies have shown that investments in equity securities (stocks) give the highest rate of return over the long run.
However, you are not sure in which companies you should invest. You send for and receive the annual reports of several companies in three growth industries.
In making your investment decision, what useful information would you expect to find in the following?
1. The balance sheet
2. The income statement
3. The statement of cash flows
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