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What are some red flags in a balance sheet and profit and loss?

Cash Flow statement and balance sheet can really show fraud. Basically the easiest way to see is if the revenue reported does not match the amount of inventory needed to make that much money. ex report 100 dollar of revenue but 100 dollars of revenue would have taken 100 units. if you look at balance sheet and company only reported 50 units. that could signal an issue.

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