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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

On February 13, 2018, the New York Times reported that Uber is planning an IPO. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. Let’s first look at the balance sheet. steven moore for hbr.

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Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

could become the world’s largest oil producer in 2018, surpassing Saudi Arabia and Russia. In fact, 2018 may mark the first year shale producers will be able to fund future expansions of drilling programs through their own cash flow. Most major producers with large balance sheets will likely hedge their bets and attempt both.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

Rather than cut expenditures to a level that could be supported by recurring revenues, the city mostly used non-recurring resources to fill the gap from one fiscal year to the next. It is not a balance sheet test, but a cash flow test. So, Chicago’s structural budget gap is a political, not economic, creature.