For example, the Yinguangxia incident, the income on the income statement this year has increased by several hundred percentage points compared with last year, which is not credible and the problem is very obvious. Those enterprises whose growth rate is between 50%- 100% should pay special attention.
Second, look at the bad debt reserves of enterprises.
Some enterprises sell their products and can't get their money back, but they don't mention it on the books and haven't extracted enough. Such income and profits are not true.
Third, see if long-term investment is normal.
Some enterprises will have some other investments besides their main business, depending on whether such investments are related to their main business. If not, then this kind of investment is very risky.
Fourth, see if other receivables are clear.
On the balance sheet of some enterprises, other receivables are in a mess, and many old accounts are put in it, and many can't be collected.
Fifth, to see whether there are related transactions, we should pay special attention to the fact that the major shareholder borrows from the listed company in the middle of the year and pays back the money with the bank loan at the end of the year, so that the practice of borrowing by the major shareholder cannot be reflected in the financial statements at the end of the year.
Sixth, see whether the cash flow statement can normally reflect the flow of funds, and pay attention to the reasons and matters of future cash injection and outflow.
The resources of extended information company are obtained in cash, which will lead to "financing cash inflow". Company A's assets are to be invested abroad, so it is invested in its own operating assets. For example, you can invest in some fixed assets or other enterprises, which are all investment assets. So there will be "investment cash outflow" in the picture.
Operating assets will bring in income. If we can get cash from this income, then I will form an "operating cash inflow". In order to realize these incomes, there will be some expenses and costs. If these expenses and costs need cash, there will be an "operating cash outflow".
The net outflow and inflow of cash from operating assets form "net inflow of operating cash". Investment assets can form investment income. If the income is reflected in cash, it is "net inflow of investment cash".
When a company has operating cash inflows and investment cash inflows, it will consider paying off its liabilities. Once the money is paid back, "financing cash outflow" will occur, or in the form of dividends. If dividends are cash expenditures, they also belong to "cash outflow from financing".
Baidu Encyclopedia-Current Situation of Enterprise Management