Abstract
A recent Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) requires replacement of the statement of changes in financial position with a statement of cash flows. Cash flows are to be disclosed in operating, financing, and investing categories. However, 2 objectives that are aimed at aiding external users of financial data will be very difficult, if not impossible, to achieve. It is proposed that SFAS 14 provisions be extended to cash-based information. If the fixed and variable components of an entity's operating cash flows are reported, cash operating break-even analysis could be used to improve financial analysis and to provide management with useful information.