• Journal of the Korea Safety Management & Science
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• v.15 no.4
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• pp.435-448
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• 2013

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 in the field. The study develops three extended models to determine the optimal cash amount: ECA model with interest opportunity cost, financing transaction cost and financing fail cost, ECA model with daily cash supply and interest opportunity cost, ECA model with financing fail cost and interest opportunity cost. Earnings Before Interests, Tax, Depreciation and Amortization(EBITDA) is obtained by subtracting noncash depreciation costs from Earning Before Interest and Tax(EBIT), which is efficient metric to evaluate operating cash flow. The research also develops two extended Cash BEP models, considered as interest and corporate tax, in order to indentify the break-even point as EBITDA equals zero. Furthermore, this paper proposes the modified version of CFS by introducing the reclassification of operating and financing accounts in the statement of financial position. 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 to provide a better understanding of the proposed cash flow models, numerical examples, such as two-sample t test and Analysis of Variance(ANOVA), are presented to demonstrate the statistical significance according to the industrial types for net working capital(i.e cash-to-cash), net profit, operating cash flow and free cash flow.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.35-41
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• 2002

This research introduces the development of a project-level cash flow forecasting model in construction stage based on the planned earned value and the cost from a general contractors view on a jobsite. Most previous models have been developed to assist contractors in their pre-tendering or planning stage cash flow forecasts. The critical key to cash flow forecasting at the project level is how to build a cash-out model. The basic concept is to use moving weights of cost categories in a budget over project duration. The cost categories are classified to compile resources with almost the same time lags that are based on contracting payment conditions and credit times given by suppliers or venders. For cash-in, net planned monthly-earned values are simply transferred to the cash-in forecast, to be applied there with billing time and retention money. Validation of the model involves applying data from on-going 4 projects in progress for 12 months. Based on the results of the comparative analyses through the simulation of the proposed model and the existing models, the proposed model is more accurate, flexible and simpler than traditional models to the employee of construction jobsite who is not oriented financial knowledge.

• Journal of Families and Better Life
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• v.32 no.5
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• pp.125-143
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• 2014

The purpose of this study was to gain a better understanding of households with a negative cash flow. The Household Budget Survey conducted in 2000, 2005, and 2010 by the Bureau of Statistics in South Korea were used for this study. The households used in this study were divided into four groups according to their income levels; they were categorized the lowest, low, middle, and high income groups. This study made several findings regarding households with a negative/positive cash flow. Firstly, the demographic and economic characteristics were different between those who have a negative cash flow and those with a positive cash flow. A female household head, a household head age 65 and older, a household head with a lower educational attainment, an unemployed household head, and the presence of a child/children in schools were related with the household deficit. Secondly, the households with a positive cash flow had a higher income level compared to the households with a negative cash flow, while the households with a negative cash flow had a much higher consumption level compared to the households with a positive cash flow. Thirdly, the household deficit to total income ratio of the lowest income group was higher when compared to any other income group. Lastly, the multivariate statistics showed that households including a child/children in schools are more likely to be a household with a negative cash flow. Especially, the expenditures on education and transportation were related with the likelihood of a household deficit.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.2
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• pp.47-55
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• 2018

The Korean Ministry of Education (MOE) required cash flow statements, instead of fund statements, as a component of the financial statements of the Industry-Academic Cooperation Foundations (IACF) when it revised IACF accounting rules in 2012. While the fund statements were aligned its accounts to the operating statements' accounts level, the newly adopted cash flow statements' accounts retreated to two levels higher than those of the operating statements. It may be resulted from the consideration that IACFs' burden of preparing cash flow statements especially in direct method. To help IACFs prepare the cash flow statements, MOE's guidance on IACF accounting rules introduced cash flow statement preparation method and presented a practical example, but it did not check whether the accounts of the cash flow statement were reconciled to the accounts of corresponding balance sheet and operating statement. That means that the guidance still lacks how to assure it was accurately prepared. Our study proposed cash flow statement preparation using reconciliation method which reconciles cash flow statement accounts' amounts to balance sheet and operating statement accounts' amounts with integrity checking and also provided a practical example by using the same case in MOE's guidance on IACF accounting rules to help IACF accounting personnel to prepare a cash flow statement efficiently.

• The Korean Journal of Health Service Management
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• v.4 no.1
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• pp.87-97
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• 2010

The study analyzed the cash flow and external funding in focusing on the relationship of the two factors in Korean hospitals and some changes in the relationship. The results analyzing this study were summarized as follows: First, the discriminant function of new external funds was generally the ratio of cash flow from operating activities to sales, the ratio of cash flow from investment activities to sales, the ratio of cash flow from financing activities to sales in order. The prediction rate of total discriminant function was more than 92%. Second, in case of Korean hospitals, it was known that the ratio of cash flow from operating activities to sales, particularly the net income to sales was the biggest influencing factor on the decision to external funding.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.243-251
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• 2013

Cash management is a major concern for all contractors in the construction industry. It is arguable that cash is the most critical resource of all. A contractor needs to secure sufficient funds to navigate the project to the end, while keeping an eye on maximizing profits along the way. Past research attempted to address such topic via developing models to tackle the time-cost tradeoff problem, cash flow forecasting, and cash flow management. Yet, little was done to integrate the three aspects of cash management together. This paper, as such, presents a comprehensive model that integrates the time-cost tradeoff problem, cash flow management, and cash flow forecasting. First, the model determines the project optimal completion time by considering the different alternative construction methods available for executing project activities. Second, it investigates different funding alternatives and proposes a project-level cash management plan. Two funding alternatives are considered; they are borrowing and company own financing. The model was built as a combinatorial optimization model that utilizes ant colony search capabilities. The model also utilizes Microsoft Project software and spreadsheets to maintain an environment that incorporates activities, their durations, and other project data, in order to estimate project completion time and cost. Ant Colony Optimization algorithm was coded as a Macro program using VBA. Finally, an example project was used to test the developed model, where it acted reliably in maximizing the contractor's profit in the test project.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2004.11a
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• pp.423-426
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• 2004

Costs of public rental housing development project consist on various kinds of profits and expenses such as national housing fund, rental cost, construction cost, financing cost. Therefore, project would not be executed without minute management and precise prediction about each item. Cash (low prediction and analysis are necessary to grasp current situation of project, because construction project which is conducted for a long period has fluent risks and inflows and outflows of cash. Although cash flow analysis has been conducted, cash flow has never been expected and managed. General matters to expect cash flow can be known by actual results and literatures. Hut there is no thesis which is studied about risk to enhance precision of expectation of cash flow. As existing thesises studied the risk about whole project, we haven't known precise relations of cash flow and project. Therefore, in this study, we are supposed to analysis and distinguish risk facts which can affect each item of cash flow for precise cash flow expectation and management of public rental housing development project.

• The Korean Journal of Health Service Management
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• v.11 no.1
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• pp.1-9
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• 2017

Objectives : Cash Flows from operating activities is the most important part of the cash flow statement and it serves as an important financing source. Accordingly, the purpose of this study is to examine the influence of the contents of cash flows from operating activities on the changes in borrowings. Methods : In this study financial data from 2011 to 2014 were used to analyz 36 general hospitals and 85 hospitals according to the index displaying variation against the previous year. Results : For general hospitals, borrowings in cash flow from financing activities increased as net income decreased; while depreciation etc increased in cash flow from operating activities. For hospitals, borrowings in cash flow from financing activities increased as the gain on disposition of tangible assets in cash flow from operating activities decreased. Conclusions : General hospitals need to control the management of borrowings and depreciation at the level of funding management; whereas hospitals need to manage of future cash forecasts for stability of operational funds.

• The Journal of Industrial Distribution & Business
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• v.5 no.1
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• pp.5-9
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• 2014

Purpose - This study aims to examine the incremental information content of cash flw from operations and earnings in the Iranian capital market. Design, methodology, and approach - Based on market-based accounting research, this study uses statistical associations between accounting data (earnings and cash flw) and stock returns to assess/measure the incremental information content (value relevance) of cash flw and earnings. A multivariate regression model based on panel data is used to examine the incremental information content of earnings and cash flow from operations. Results - The results show that both earnings and cash flow from operations have incremental information content beyond each other. These results are consistent with the findings of recent studies. Overall, the fidings of this study support the usefulness of cash flw information in addition to earnings, in fim valuation by investors in the Iranian market. Conclusions - The study makes the following contributions to the Iranian literature on incremental information content of cash flw and earnings. First, this study employs actual cash flw data derived from cash flw statements. Second, this study employs a large sample size for a more recent period.

• Asian Journal of Business Environment
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• v.9 no.1
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• pp.21-28
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• 2019

Purpose - The purpose of this paper is to investigate the relationship between corporate social responsibility disclosure (CSRD) and investment-cash flow sensitivity, which is a surrogate for financing constraints. Research design, data, and methodology - Taking China's A-share listed companies between 2009 and 2016 as a sample, this paper empirically tests the relationship between CSRD and investment-cash flow sensitivity by Panel VAR model. By introducing the orthogonal impulse response function, this paper distinguishes the fundamental factors and financial ones that affect corporate investment behavior. Results - Findings indicate that: (1) investment-cash flow sensitivity of firms with low level of CSRD is significantly lower than that of firms with high level of CSRD; (2) the orthogonal impulse response of corporate investment to cash flow in firms with high level of CSRD is significantly different from zero, but it is not significant in firms with low level of CSRD; (3) for firms with low level of CSRD, 0.7% of corporate investment volatility can be explained by the change in cash flow, which is lower than that of firms with high level of CSRD (1.1%). Conclusions - Corporations disclosing more and higher quality CSRD are often those faced with financing constraints. Voluntary disclosure can help them alleviate information asymmetry and financing constraints.