1. Let's browse the structure of the income statement first.

Browse the amount and approximate proportion structure of income, cost and profit, and establish a preliminary impression. Look at the changes in the income statement in the last two years and establish a preliminary impression of the changes in operating conditions. Then look at the corresponding relationship between the profit and loss of the income statement and the increase and decrease of cash balance.

2. Browse the details and changes of income, cost and expense items in the comments.

The operating conditions and trends of the company are reflected in the income, so it is very important to know the income content, structure, market competitiveness and future trends of the company. On the other hand, in most industries, accounting income recognition is very close to the common sense and understanding of ordinary people, and it is not as complicated as cost recognition (like cost calculation in manufacturing and real estate, cost calculation is prone to errors).

3. Browse the balance sheet structure.

Look at the distribution of cash balance and cash flow statement in two years. Divide the balance of accounts receivable by the average monthly operating income, and see that accounts receivable are roughly equivalent to several months' income (accounts payable are similar). Weigh it and you will know that it has a bottom.