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If a company stated in its annual report to shareholders that it made efforts to recapitalize (that is, change the capital structure) to a higher amount of leverage, you could certainly look at the balance sheet to verify this. What other financial statement, the income statement or statement of cash flows, would also show evidence? Give an example of what the evidence might look like?

If a company stated in its annual report to shareholders that it made efforts to recapitalize (that is, change the

capital structure) to a higher amount of leverage, you could certainly look at the balance sheet to verify this. What other financial statement, the income statement or statement of cash flows, would also show evidence? Give an example of what the evidence might look like?  

 
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