奥井英作のブログ　－　資金会計原論

資金会計原論Theory of Cash by Funds— Prologue
This is the theory developed by Mr. Yukitoshi Satoh, Certified Tax Accountant. He concentrated himself on reading the financial position and the achievement results through Cash.

Finally he succeeded to make a Balance Sheet by Funds (B/S by Funds). It is consisting of 4 funds, i.e., Fund on Retained Earnings, Fund forming Company Core, Fund on  Receivable-Trade & Payable-Trade and Fund on Others. And Cash is placed at the bottom line, in other words, the total of 4 Funds is Cash.  

資金会計原論Theory of Cash by Funds — 1. Birth of B/L & P/L by Funds
Attached please review General Electric Company’s B/S by Funds for 2004 through 2006. Look at the B/S by Funds 2006/12.
Cash=Receipts－Disbursements.
Fund Balance after Business Activities=Cash of Fund on Retained Earnings + Cash of Fund forming Company Core + Cash of Fund on Receivable-Trade & Payable-Trade
Cash Total = Fund Balance after Business Activities + Fund on Others

Please click on the above sheet, then you will get the clearer one.

資金会計原論Theory of Cash by Funds — 1.1. Birth of B/L & P/L by Funds

The sheet illustrated yesterday was hard to read. So 2006 portion is illustrated. Please click it to enlarge. If it is still not clear, click %button at the bottom corner of the right. Select 125%, move pointer on the part of the indistinct, and back to the %button and select 100%. Very sorry troubled you so much.

資金会計原論Theory of Cash by Funds — 1.2. Birth of B/L & P/L by Funds

Today two fiscal period of B/S by Fund is illustrated, so combine these 2 fiscal periods of B/S by Fund and 2006 B/S by Fund illustrated yesterday after printing out, then please complete the 3 fiscal periods of B/S by Fund.

資金会計原論Theory of Cash by Funds—  1.3 Birth of B/S & P/L by Funds
GE Cash Flow ending 2006(ファイルサイズ：15.5KB) Please click the under-lined.

The above sheet is GE’ Cash Flow ending December 2006, and the high-lights of Cash from the sheet completed yesterday. Blue arrows show the direction of cash flow. Yellow columns are the difference between two B/S by Funds and at the same time it is P/L by Funds in our theory.

資金会計原論Theory of Cash by Funds—  1.4 Birth of B/L & P/L by Funds

Please click the file name under-lined and select the "Cash Flow" sheet. It has 3 fiscal periods of B/S by Funds and 2 fiscal periods of P/L by Funds. Since the Cash are placed at the bottom line and the Cash flows from the left side to right side, the sheet of 3 fiscal periods is defined as Cash account. Therefore the opposite account of all accounts above the bottom line is Cash. The Cash flows from the top (Fund on Retained Earnings) to the Bottom (Cash).

No cash lies. Accordingly if the accounts above the bottom line were modified, the financial status would not be up-graded. The worse is worse.

My poor skill to illustrate the data troubled you so much. Two sheets so far illustrated are compiled in 1 book and illustrated here, GE Cash Flow ending 2006(ファイルサイズ：35KB)

資金会計原論Theory of Cash by Funds— 1.5 Birth of B/L & P/L by Funds
Here I have to explain why there are 2 Profit & Loss statements, one in B/S by Funds and another as column between 2 periods of B/S by Funds.
The former is a P/L as one of financial statements, and net profit is a portion of unappropriated earned surplus, in lieu of showing merely net profit, its basic figures of profit items and loss items are shown as Profit and Loss statement. In conclusion B/S by Funds have a Profit and Loss statement as a part of Fund on Retained Earnings, it intends to show Net Profit as a part of unappropriated earned surplus. In the result B/S by Funds became more informative.

資金会計原論Theory of Cash by Funds— 1.6 Birth of B/L & P/L by Funds
Today another P/L is explained. It is P/L by Funds between 2 periods of B/S by Funds.
Look at the P/L by Funds GE 2006. Black figures are Receipts and Red figures are Disbursements. Cash balance in the disbursement side is the increased cash for the period, that is, Cash profit. Whether if Cash showed, profit or loss, does not matter. The important is the process generated profit or loss. If the Fund on Retained Earnings is indicated in the Disbursements, it must be serious, and if the Receipts amount is small and Cash balance appeared in Receipts as Cash loss, it must be in a tight corner financially. Of course before making final judgment, further scrutinization is required. Please click the following sheet to enlarge.

資金会計原論Theory of Cash by Funds— 1.7 Birth of B/L & P/L by Funds
GE has a characteristic of “Receivable-trade<Payable-trade”. This trend is favorable for GE. In 2006 the investment plan after Mr. JR Immelt succeeded Mr. JF Welch as CEO
was approaching to the goal, therefore the investment (952) to the Fund forming Company Core was only 12% of the increased value (7,927) of the Fund on Retained Earnings. The increased disbursement (6,125) of the Fund on Others was the purchase of Treasury Stock. This would be said a contribution to the owner with excess Cash. And the increased Cash (2,465) was transferred to the next fiscal period.

資金会計原論Theory of Cash by Funds— 1.8 Birth of B/L & P/L by Funds
I have to explain why 3 Funds other than Fund on Retained Earnings are P/L items.
Late Mr. Satoh said borrowings are to receive future income in advance, therefore repayments are current costs. This notion is a recognition of CEO, especially the presidents of smaller company think so.  At the time I heard this theory I was astonished, but I am now completely agreed watching the P/L by Funds GE 2006.
外国の方にも資金会計を理解していただくために6月から英文で書き始めました。日本語文の同時掲載を求める声があり、今までのところを簡単に纏めます。6月9日の
 GE Cash Flow ending 2006をクッリクしていただくと緑色のシート見出し「BSｂｙFund」（3期資金別貸借対照表GE）と黄色の見出し「CashFlow」（キャッシュフロー計算書）の2表を選択して見ることができます。また6月11日の表をクッリクしていただくと、「P/L by Fund GE 2006」が拡大されます。今まで3期資金別貸借対照表の説明と3期資金別貸借対照表（含む2期の資金別損益計算書）すべてが現金勘定なので、すべてがキャッシュフロー計算書であるという説明、そして2006年の資金別損益計算書の説明をしました。

資金会計原論Theory of Cash by Funds— 1.9 Birth of B/L & P/L by Funds
The topic of this week is New B/S by Funds. Please click the underlined, and select the sheet [NewBSbFund], you will see the 3 periods of GE’s New B/S by Funds ending 2006/12. This is the advanced B/S by Funds, it will show you more clearly the flow of Cash step by step.
 GENewBSbyFund(ファイルサイズ：48KB)
今週からニュー資金別貸借対照表に話題を移します。上のアンダーラインのところをクッリクし、「NewBSbFund」のシートを選択して下さい。

資金会計原論Theory of Cash by Funds— 1.10 Birth of B/L & P/L by Funds
New B/S by funds is the biggest legacy of Mr. Satoh. It tells us many informative things, it will be told one by one. Fund on Retained Earnings consist of Net Retained Earnings brought from preceding period which is indicated in the top line and Profit and Loss Statement for the term. Total of Retained Earnings brought from preceding period and the Profit or Loss for the term is the Retained Earnings of the company. Strictly speaking Retained Earnings brought from preceding period includes the adjustments based on our theory.
損益資金が前期から繰越された利益剰余金と当期損益とからなり、損益資金が企業の内部留保であることを説明した。厳密に言えば前期から繰越された利益剰余金には資金会計理論による調整額が含まれる。

資金会計原論Theory of Cash by Funds— 1.11 Birth of B/L & P/L by Funds
Look at the 3 periods of Fund on Retained Earnings. In the GE’ P/L columns, black figures are found. This tells us GE’s Retained Earnings are increasing. Increasing is the highest proposition for a company operating in the capitalism world. A small snow ball at the foundation in 1892 started rolling and in 2006 the ball became $109,927 mil. So $964 mil in average were accumulated for 114 years.
  Cash as Fund on Retained Earnings flows from left to right , and flows from top to bottom.
GEの損益資金の雪だるまは年平均964百万＄積み重なり114年後の2006年には109,927百万＄となった。 

資金会計原論Theory of Cash by Funds— 1.12 Birth of B/L & P/L by Funds
The next step of New B/S by Funds is Fund on Difference of Receivable-trade & Payable –Trade. The plus or minas status of this Fund gives great impact on Cash flow. Even if sales were growing and/or profit was increasing, however, if the minus of this Fund was bigger than the Fund on Retained Earnings, to continue business is difficult. This is a basic theory, we must keep in mind there is an exception. Trading company often invest Receivable-Trade to maintain commercial power. The fund balance of such trading companies is kept at other than Fund on Difference of Receivable-trade & Payable –Trade. Actual business is flexible, so we have to see the data flexibly.
売上仕入資金は資金繰りの鍵を握る。

資金会計原論Theory of Cash by Funds— 1.13 Birth of B/L & P/L by Funds
Next important point is Substantial Retained Earnings. This is the balance of Retained Earnings after deducting sight balance and Inventory. The goal of every transaction is Cash. Before the goal there are many financial crises. If the Substantial Retained Earnings were less than zero and such status continued for years, crisis would be realized. Continuing business in such status is going towards death. We have learned such cases.
実質損益資金の赤字が続くと危ない。

資金会計原論Theory of Cash by Funds— 1.14 Birth of B/L & P/L by Funds
Capital and Capital Surplus is added on Substantial Retained Earnings, and the result is called Owner’s Fund. If this fund is less than zero, all owner’s equity is disappeared.
Owner’s Fund minus investments is Net Owner’s Fund. This is the fund status before accepting borrowings. If this fund is over zero, it means there is a residue of Fund on Retained Earnings. If this fund is less than zero, borrowing is necessitated. The number of the Company which this fund is less than zero is bigger than the number of the company which this fund is over zero. Plus or minus of this fund does not mean the measure to judge the company is good or bad.
A few necessary items to amend were fund in the attached excel file in the blog of June 16, please use the following file hereafter.GENewBSbyFund-ver1(ファイルサイズ：48KB)
実質損益資金と正味損益資金について説明しました。

資金会計原論Theory of Cash by Funds— 1.15 Birth of B/L & P/L by Funds
If the plus figures of Net Owner’s Fund were increasing or the red figures of it were decreasing, the company’s Cash is growing. So this is an important indicator. Net owner’s fund plus Long Term Borrowings is Fund Balance after business activity. If this fund is minus, the minus is required to be replenished by Short Term Borrowings. Being the minus less than operating fund is important. Fund Balance after Business Activity plus Short Term Borrowings is Fund Balance before Other Activity. If this fund is less than zero, it tells that the fund balance is maintained by the other accounts. This is not so good sign.
正味損益資金以下修正安定資金まで説明しました。

資金会計原論Theory of Cash by Funds— 1.16 Birth of B/L & P/L by Funds
Cash, the bottom line of New B/S by Fund, is today’s topic. This morning Nikkei’s head line was “Companies more than 40% on Stock Exchange Market, substantially no borrowings”. An explanation is added, Cash is bigger than total interest bearing borrowings.
  Our theory repeatedly expressed the importance of Cash contents.
If Cash < Short Term Borrowings, the Cash is the residue of Short Term Borrowings.
If Cash < (Short Term Borrowings + Long Term Borrowings), the Cash is the residue of Borrowings.
If Cash < (Borrowings + Paid-in Capital), the Cash is the residue of (Borrowings + Paid-in Capital).
If Cash < (Retained Earnings + Paid-in Capital + Borrowings), the Cash is the residue of (Retained Earnings + Paid-in Capital + Borrowings).
Late Mr. Y. Satoh said the ideal type of Cash is that Cash is 100% consisting of Retained Earnings. I know this notion is not 100% accepted, especially by the people internationally oriented.
借入金が残っているだけのCashか、損益資金が残っているCashか、今朝の日経1面のトップ記事に関連して説明しました。

Please copy the attached file. For the time being this file will be the subject.

XCoDataHighlit(ファイルサイズ：14.5KB)

これからしばらく添付ファイルをテーマとします。ファイルの日本語版は明日掲載の予定です。

資金会計原論Theory of Cash by Funds— 2.0 Case study・・X Co.
I would like to start Dividend 3,762 in yellow. X company decided to pay dividend under the condition Net Profit was deficit. To enable dividend payment, Yen31,869mil was transferred from other surplus to unappropriated earned surplus, In accordance with our theory, minus sight balance and inventory disturbed the Cash-in flow, then big amount of minus Substantial Retained Earnings (－173,757) was generated. We think such unrealized Cash should not be treated as the fund for dividend.
この配当金を支払うCashがあるのだろうか？

閑話休題
南方の島国ツバルが地球温暖化で水没の危機にある。東京都の南の小島にいつでもいらっしゃいと言ってはどうでしょうか。

XCデータHighlight(ファイルサイズ：14.5KB)
資金会計原論Theory of Cash by Funds— 2.0 ケーススタディ・・X Co.
父　ファイルをクッリクして X Co データHighlight  をプリントして下さい。これからこのデータを使用しますので。
緑　これから私も登場できるのね、嬉しいわ。Ｘ社は赤字なのに配当したのね。赤字でも配当可能利益があれば配当できるのでしょう。
父　勿論。だけどＸ社は売上仕入資金のサイト負けと棚卸資産を損益資金から控除した実質損益資金が－173,757と損益資金の3倍もの未実現Cashがある。このことは資金会計だけのこととして済ますことはできないと思う。
                       夏帽子ふと見せし笑む幼顔