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But did my interview answer hold any truth whatsoever?
Well, a little. It's true that each of the three financial statements -- income statement, balance sheet, and cash flow statement -- holds certain puzzle pieces that are essential to solving the mystery of how a business makes money. The income statement tells us how much product was sold; the balance sheet shows what resources were used to run the business; and the cash flow statement reveals the actual inflows and outflows of cash.
But let's get honest. In the real world of hurried lives, precious little spare time, and information overload, we investors need a fast and dirty way to evaluate a company's financial results...
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