You can find part one of this series here if you missed it. Alright, so we talked about the income statement for the most part in the first article. Let's move on to the actual statement of cash flows. Continuing to use Amazon (AMZN) as an example here, this is where we want to be looking at the top part of the cash flow. That's the net income arriving, and then being supplemented by all kinds of adjustments: Everything looks pretty good here then. These numbers make it look like that cash flow is growing every year, and that it's all coming from nice, healthy sales and growth. For the sake of simplicity, I'm going to go ahead and approach this from the position that these accounting entries are completely legit, and that there is no chance that the IRS will have any impact on how they are accounted for. In exchange for giving them the benefit of the doubt, then I want to have that kind of equality in place when talking about this next set of columns: This little portion here is the part that this article is named after. If you look at the operating activities cash flow growth, it increased by 30% from 2012-2013, but only 24% from 2013-2014. Capex and investments have been steadily increasing 18% both years. That brings us to the last portion of our cash flow statement, where debts are looked at: Ok, wait a minute, this is all kinds of inconsistent, and these are going to be the final numbers that ultimately move over to the balance sheet. Although the numbers are positive, you can see that the company borrowing money to make up the difference in what they earned has now become a normal practice for them. More to come tomorrow when I finish up part 3.