Companies use financial statements -- income statements, balance sheets and cash flow statements -- to track and assess their operational and financial performance. According to a survey administered ...

Baldwin, Carliss Y. "Technical Note on LBO Valuation (B): The Equity Cash Flow Method of Valuation using CAPM." Harvard Business School Technical Note 902-005, July 2001.

A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash flowing into and out of the business. To ...