I got to my car and dug through the back seat for my first-aid kit -- a bottle of Jack, a stack of paper towels, and some duct tape. I was bleeding like a stuck pig, but a long tug of Jack made it feel much better. I poured a splash on my hand, screamed several bad words, and wrapped it; it wasn't pretty, but it stopped the bleeding. I could bend my fingers just enough to drive. I was almost to Techtek when I remembered to called the office.

"Hi boss," Motli said. "You get anything from the mistress?"

"Yeah, a 'Not At This Address' notice. I think I found Ms. Christian's bad guy, though. We had a scuffle. Well, he had a scuffle, I have a festering wound. Can you get a financial report from Techtek, darlin'?" I asked.

"Already got one, boss," she said, loud enough that I had to pull the phone away from my ear. God, that voice was gonna give me a tumor one day.

"How do you DO that?" I asked.

"Acey, Acey, Acey...I got skills," she replied.

"Look through the numbers and tell me about Techtek's cash fl--"

"Flow from operations? I thought you might want to know about that."

"OK. You DO have skills. You're a scary person, Motli. Talk to me."

She filled me in as I pulled past an empty security gate and into a football field-sized parking lot in front of Techtek Industries. What she told me didn't come as much surprise when I saw only two dozen or so cars in the huge lot.

"....rising cash flow but no money from operations," she concluded.

"Yeah, I can see that without the numbers. I'm at the plant. There's a factory as big as an aircraft hangar, and a parking lot twice that size...and nobody home to do the operating. I'm going in to have a look around."

"Oh my," Motli said. "I'm looking under investing activities, Acey, and it looks to me like all Techtek's cash flow rise has come from selling off their equipment, plus a little here and there from other sources."

I told Motli I'd call her later, and I walked in the nondescript front door. I was braced by an officious little twit wearing an off-the-rack suit. He eyeballed me up and down twice, then cocked an eyebrow. "May I help you?" he sniffed.

"Yeah, I'd like to see Ms. Christian."

"And you are?"

"The names Diamond. I'm a friend."

"Ms. Christian doesn't have many blood-soaked friends. May I tell her what this is regarding?"

"She'll know," I said. He picked up the phone and waited several seconds, then told me Ms. Christian was probably on the floor. He excused himself and walked into the factory, leaving the door open. I took a peek. I didn't know anything about making igniters, which is what Techtek did, but I knew a factory floor full of brand new equipment when I saw it. Didn't look like anything had been sold off -- something was definitely hinky here. I wondered what other sources Motli had been talking about.

"FREEZE!" came the booming voice from behind me. "Make one move and I'll fill your butt with bullets!" I froze. Not even a slug of Jack would cure a butt full of bullets. "What are you DOING here!?" the voice demanded. "Make it good or you're in trouble, pal. This here is a top secret facility!"

"Um...well...right now I'm trying to remember: which of the following is not a part of the statement of cash flow under investing activities?

1) Cash spent or received from buying or selling stocks

2) Cash spent or received from buying or selling land

3) Cash spent or received from buying or selling equipment

4) Cash spent or received from buying or selling factories

The answer is 1) Cash spent or received from buying or selling stocks.

When the statement of cash flow refers to cash flow from investing activity, it is referring to how much cash is invested in or devested from the company. It has nothing to do with the stock market. If the company invests in some land, a factory, and equipment to fill the factory, exactly how much cash the company is spending on these investments will show up in the cash flow from investing activities portion of the statement of cash flow. If the company is receiving cash for selling off land, property, or equipment it would also show up in this part of the statement of cash flow.

"I don't know the answer!" the voice said. "It's not my department. Intruders are my department, and you're one!"

"But I'm hear to see Ms. Christian," I protested.

"NOT WITHOUT A PASS! NO ONE GETS IN WITHOUT A PASS!"

Clearly the guard was too high-strung to argue with. I was led out from behind with a gun pressing against my back... when I caught a glimpse of the guard in the glass of the front door. It was my old friend, Sgt. Raymond.

© Copyright 1995-2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. The Motley Fool is a registered trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us