Kate Snow just retired from a career with Wal-Mart, cashing out a sizable retirement fund at the time of doing so. To start a second career, she is looking at the possibility of buying three different businesses. She has three years’ historical financial statements for each business and has been poring over the numbers. She was puzzled when she read the following statement in a book about small business financial management: “Be careful when looking at balance sheets to fully understand what you’re looking at. In some respects balance sheets are very revealing, and in other respects they can be very deceiving.” What do you think the author of the book meant by that statement?
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