Cash Flow Manipulations and Red Flags

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Lyrics

[Verse 1]
The CFO adjusts the numbers late at night
Moving cash around to make the quarters bright
Operating cash becomes investing grade
A simple reclassification masquerade
They stretch the vendor payments forty days
While customers get discounted early pays
The balance sheet stays clean and debt looks low
But something's wrong beneath this polished show

[Chorus]
Cash flow tricks and sleight of hand
C-S-C manipulation planned
Classification, Stretching, Capitalizing too
Red flags waving right in front of you
When operating cash flow starts to fade
But investing numbers climb like a parade
Question every footnote that you see
Cash flow trickery

[Verse 2]
They capitalize the training costs as assets
Software licenses in investment baskets
What should hit the income statement now
Gets buried in the balance sheet somehow
Watch the working capital swing around
Accounts receivable climbing off the ground
While inventory sits for months on end
These warning signs you need to comprehend

[Chorus]
Cash flow tricks and sleight of hand
C-S-C manipulation planned
Classification, Stretching, Capitalizing too
Red flags waving right in front of you
When operating cash flow starts to fade
But investing numbers climb like a parade
Question every footnote that you see
Cash flow trickery

[Bridge]
Compare the cash flow to the income earned
Check if receivables have really turned
Look for footnotes buried deep inside
Where management's assumptions like to hide

[Verse 3]
The ratios don't match the cash you see
Quality of earnings mystery
When sales go up but cash flow drops below
That's when you need to dig and really know
Sustainable or just accounting art
These games will tear investor trust apart

[Chorus]
Cash flow tricks and sleight of hand
C-S-C manipulation planned
Classification, Stretching, Capitalizing too
Red flags waving right in front of you
When operating cash flow starts to fade
But investing numbers climb like a parade
Question every footnote that you see
Cash flow trickery

[Outro]
Trust but verify what the statements show
The truth lives in the cash flow

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