Common-size balance sheets and financial ratios are given for thirteen companies. Students must identify which company is in which of thirteen industries. Gives students practice in using financial ratios and exploring financial characteristics of companies and industries.

The cash flow statement provides a potential wealth of information about how a company uses its assets. Unfortunately, too many readers of financial reports gloss over this part of the document and head to the long-familiar income statement and balance sheet. They probably do this because of the comparative recency of the cash flow statement and because their business schooling did not expose them to it. Contrary to most readers' assumption, though, the cash flow statement does not require sophisticated analysis of ratios in order to appreciate its value. This article provides a straightforward sequence of steps for tapping into the trove of information that a cash flow statement offers: 1) scanning the big picture; 2) checking the power of the cash flow engine; 3) pinpointing the good news and the bad news; and 4) putting the puzzle together. A self-test is provided so that readers can assess their ability to follow these steps and thus use the cash flow statement to generate powerful information about a firm's financial operations.