ISSN : 1229-6783(Print)
ISSN : 2288-1484(Online)
ISSN : 2288-1484(Online)
Journal of the Korea Safety Management & Science Vol.15 No.4 pp.435-448
DOI : https://doi.org/10.12812/ksms.2013.15.4.435
DOI : https://doi.org/10.12812/ksms.2013.15.4.435
현금흐름모형 고찰에 의한 확장모형의 개발 및 적용
Development and Implementation of Extension Models Based on the Review of Cash Flow Models
Received October 10, 2013; Revision Received November 28, 2013; Accepted December 12, 2013.
Abstract
The aim of this study is to investigate and develop the extended models for Economic Cash Amount(ECA),Cash Break Even-Point(BEP), and Cash Flow Statement(CFS) by referencing systematic literature review inthe field. The study develops three extended models to determine the optimal cash amount: ECA model withinterest opportunity cost, financing transaction cost and financing fail cost, ECA model with daily cash supplyand interest opportunity cost, ECA model with financing fail cost and interest opportunity cost. Earnings BeforeInterests, Tax, Depreciation and Amortization(EBITDA) is obtained by subtracting noncash depreciation costsfrom Earning Before Interest and Tax(EBIT), which is efficient metric to evaluate operating cash flow. Theresearch also develops two extended Cash BEP models, considered as interest and corporate tax, in order toindentify the break-even point as EBITDA equals zero. Furthermore, this paper proposes the modified versionof CFS by introducing the reclassification of operating and financing accounts in the statement of financialposition. In addition, the study also present the reclassification of five types of profit, such as gross profit,EBIT, ordinary profit, special profit, and net profit within the statement of comprehensive income. In order toprovide a better understanding of the proposed cash flow models, numerical examples, such as two-sample ttest and Analysis of Variance(ANOVA), are presented to demonstrate the statistical significance according tothe industrial types for net working capital(i.e cash-to-cash), net profit, operating cash flow and free cash flow.
Extended Models,Cash Flow Models,ECA,Cash BEP,CFS,Reclassification,Financial Position,Comprehensive Income
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Reference
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19.Rayburn J.(1986), "The Association of Operating Cash Flow and Accruals with Security Returns", Journal of Accounting Research, Supplement: 112-113.
20.Song K. et al.(2002), "An International Compar ison to Make Investors Oriented Improvements in Structure of Balance Sheet", Accounting Journal, 11(1): 127-159.
21.Tsai C.(2008), "On Supply Chain Cash Flow Risks", Decision Support System, 44(4), 1031-42.
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2.Bowen R.M., Burgstahler D., Daley L.A.(1986), "Evidence on the Relationships Between Earnings and Various Measures of Cash Flows", Accounting Review, October: 713-725.
3.Choi S.(2012), "Development and Implementation of Chain Metrics for Obtaining Lean Overall Equipment Effectiveness Using Availability Measures", Journal of Korea Safety Management and Science, 14(2): 147-158.
4.Choi S.(2013), "The Linkage Strategies Between Productivity Metrics and Financial Accounting Metrics in TPM and PAC Activities", Journal of Korea Safety Management and Science, 14(3): 151-161
5.Dechow P.M.(1994), "Accounting Earnings and Cash Flows as Measures of Firm Performance: The Role of Accounting Accruals", Journal of Accounting and Economics, 18: 3-42.
6.Jo Y. et al.(1998), Cash Flow Management, SERI.
7.Ko W. et al.(2001), "On the Improvement of the Structure of the Income Statement: Based on the Survey Result", Korean Accounting Journal, 10(4): 25-56.
8.Ko W. et al.(2002), "Balance Sheet's Structural Modifications for Information Users", Korean Accounting Journal, 11(4): 165-208.
9.Komiya K.(1998), Cash Flow Management, Toyo Keizai Inc.
10.Lee D. et al.(2002), "An International Comp arison to Make Improvements on Structure of Financial Statements", Sogang Journal of Business, 13(1): 39-68.
11.Lee D.(2005), "A Proposal to Correct Wrong Teminology Used on Financial Statements", Korean Accounting Journal, 14(2): 82-105.
12.Lee D.(2008), "Development of Cash Flow Statement Financial Ratios", Sogang Journal of Business, 19(1): 95-122.
13.Lee K.(2008), "Improvement of Forms of Statement of Cash Flows for Effective Service", Korean Accounting Study, 13(3): 157-176.
14.Lee P.(2007), Fianancial Management, 4E, Pakyoungsa.
15.Ozbayrak M., Akgun M.(2006), "The Effects of Manufacturing Control Strategies on the Cash Conversion Cycle in Manufacturing Systems", International Jounal of Production Economics, 103: 535-550.
16.Penman S.(2009), Financial Statement Analysis and Security Valuation, 4 Edition, McGraw-Hill.
17.Pignataro P.(2013), Financial Modeling and Valuation, 1 Edition, Wiley.
18.Randall W.S., Farris M.T.(2009), "Utilizing Cash-to-Cash to Benchmark Company Perfor mance", Benchmarking: An International Journal, 16(4): 449-461.
19.Rayburn J.(1986), "The Association of Operating Cash Flow and Accruals with Security Returns", Journal of Accounting Research, Supplement: 112-113.
20.Song K. et al.(2002), "An International Compar ison to Make Investors Oriented Improvements in Structure of Balance Sheet", Accounting Journal, 11(1): 127-159.
21.Tsai C.(2008), "On Supply Chain Cash Flow Risks", Decision Support System, 44(4), 1031-42.
22.Yoon P.(2008), Principle of Financial Manag ement, Tamjin.
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