Stuck on an Island- FREE CASH FLOW

Everybody remembers the question if you were stuck on an island and had to bring a movie, what would it be? If someone were to ask me if I were stuck on an island and had to bring one financial document, what would it be? In a heartbeat, I would reply the Cash Flow Statement. It incorporates the income statement and the balance sheet together.
The Cash Flow Statement provides the investor with a clear picture of its operating performance in a truly accurate way. The Net Income on the Income Statement could be somewhat manipuulated by using accounting gimmicks. Yet just as important, the Cash Flow statement also supplies the investor with how that newly formed profit is being put to work.
The best companies in the world are not only the ones that generate tons of cash, but they are the companies that generate high returns on that cash. The cash flow statement illustrates whether that cash is being invested back into the company or returned to investors via dividends or share buybacks.
When it comes to determining the true financial health of a company nothing is a subsititute for the balance sheet. However, the cash flow statement does an excellent job of previewing what that balance sheet will look like. A talented investor can usually take an educated guess about the company's financial health by simply looking at the Cash Flow statement. This is because if a company is generating a lot of Cash, then they can fund their expansions internally, without having to access finances externally.
So if for some wierd reason you are stuck on an island and are only allowed one financial statement to make an investment, make sure it is the Cash Flow Statement! You never know, maybe that investment will earn you enough returns to be able to pay for a private plane to find you and fly you back home!