We continued our discussion of cash flows, by first putting to rest some final issues on earnings, including the tax rate to use in computing aftertax cash flows and dealing with money losing companies. In the process, we did look at what to do about accounting fraud, and while the answer is not much, there may be a role for forensic accounting. To be honest, most forensic accounting books are designed for valuation morticians, but here are a couple that you may find useful:
http://www.amazon.com/FinancialShena...
http://www.amazon.com/CreativeCashF...
We then moved on to examine broad questions about what to include in capital expenditures and working capital, before putting the cash flow topic to rest by working out debt cash flows and cash flows to equity. If you are interested, you may find this post that I had on free cash flows useful (with Microsoft as my case study):
https://aswathdamodaran.blogspot.com/...

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