Working capital

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economy monetary system asset


1. Theoretical foundations of current assets

1.1 General characteristics of the company's current assets

1.2 Classification and principles of working capital in September

1.3 Cost effectiveness

2. Planning requirements current assets

2.1 Normalization of current assets and determine the need for them

2.2 Own Resources formation and management of working capital in

2.3 Indicators of the use of working capital in

3. Using circulating assets and ways to speed up their rotation

3.1 Provisions for current assets as security for business

3.2 Ways to improve and accelerate the use of working capital

Conclusions list of references


Urgency of the theme: Every business, from its production and economic activity must have a certain amount of money. These financial resources the company buys on the market or in other businesses raw materials, fuel, pay electricity bills, pay their employees wages, bear the costs of development of new products, all of which constitutes an essential parameter entity, called " company's current assets. Under current market funds acquire particular importance. Because they are part of productive capital, which takes its value to the newly created product completely and returned to entrepreneur in cash at the end of each cycle of capital. Thus, working capital is an important criterion in determining the profits. Also, working capital is - an important part of the enterprise.

The availability of sufficient working capital enterprises optimal structure - a necessary prerequisite for its normal functioning in a market economy. It is also important to be able to properly manage working capital, to develop and implement measures that support the reduction in material production and acceleration of turnover of working capital. As a result of accelerated turnover of circulating funds is their release, allowing a number of positive effects. The activity of economic entities to create and sales are in the process of combining the basic production funds, convertible funds, and most work.

Continuity of the process of production and commercial activity requires continuous investment in these items for their expanded reproduction. Unlike the fixed production assets Current Assets consumed in one production cycle and the cost is fully transferred to the cost of manufactured products. Thus a part in their real forms part of the established product and commodity becomes the form in which it will use the consumer.

The purpose of course work to develop scientifically-methodical, organizational and economic planning of current assets of the enterprise. To accomplish our goal, try to achieve the following objectives: - Analyze the level of control in enterprises of all available working capital and their performance; - Characterize the functions, tasks and assess the level of current assets; - Define the problem of turnover funds at risk. The research object is planning the implementation of enterprise working capital and their involvement and ways to improve. Subject of research is current assets as one of the components of the enterprise. Thus, working capital are avansuyemu in cash value for the systematic creation and use of production assets and working capital funds in circulation the minimum necessary amount to ensure compliance now available products and timely settlements.

Since the current assets include both tangible and monetary resources from their organization and efficiency of the process depends not only material production but also the financial stability of the enterprise.

1. Theoretical foundations of current assets

1.1 Overview of the company's current assets

In companies there are ongoing financial costs (cash) funds in the process of carrying out certain economic cycle (pass money, and commodity production stage). In the first stage circuit are used to purchase raw materials and other resources that go with cash in material commodity, form certain inventory, and then entered the second stage - production. At this stage in the production process include workers who get the work done for wages. Then the material and commodity values materialized in the form of finished products.

The last stage circuit manufactured products are sold and the company has adequate revenue (sum), which not only fully recover the earlier pre-paid expenses, but also provides a profit. Working capital - a set of enterprise funds necessary for the formation of circulation and production of circulating funds and funds of circulation. [5, p.. 150]

Company's current assets - is one of the main objects of Financial Management submitted in cash and directly connected with the functioning of money and monetary system. My role as an instrument of mutual relations of all kinds sub'yektamyfinansovyh its activities, working capital affect the movement of assets and capital of the enterprise, characterized by the correct size, direction and time. [1, sec. 165] Task as quickly maneuvering current assets, ie the maximum acceleration rate of working capital - one of the current economy in modern industry. " [9, sec. 31] Formation and regulation of certain elements of working capital has its peculiarities.

With this in mind distinguish current assets in the production and trafficking, and distribute them to a normalized and normalized (Fig. 1.1). [5, p.. 151] Circulating capital, while in motion within its safety pass through three stages successively cycle. [17, sec. 143]

The first stage occurs in the sphere of circulation, when the working capital in the form of funds allocated to the company at the time of its organization or received while carrying on oral products used to purchase production. In the second phase cycle inventory without indirectly involved in the production process and after its completion host commodity form, that is re walk from the sphere of production and circulation areas. Treiya. last, stage of cycle flows in circulation when the working capital in the process of product from commodity form again go into cash. Admission to the account of the enterprise is the final point of circulation. Feature working capital cycle lies in the fact that. making a turnover, working capital at each moment are in all three forms. Delay movement of funds for any phase of the cycle breaks normal course of production and causes difficulties in finansovomi position of the enterprise. [6, c. 80]

Turnover Funds consist of three parts:

- Industrial supplies;

- Work in progress and semifinished products of own manufacture;

- Expenses of future periods. Production Inventory

- is the subject of work that are not yet involved in the production process and are at under run enterprises in the form of stocks.

Unfinished production and semi-finished products of own production of it that has not yet passed all siadiy processing. Deferred expenses is nerechovi elements of current assets, which include the cost of training and development of new products, taking place in this period but will be repaid in the future. Turnover of business assets in their movement are also associated with the funds circulation serving the sphere of circulation. They include the end products, finished products, which is shipped and in transit, cash in current and other accounts, cash in pending settlements, including accounts receivable and cash on hand. [6, c. 81]

Funds circulation - is the residue of finished products in stock companies shipped but not paid for the goods and the balances of enterprises on the current account at a bank office, in the calculation of receivables and enclosed in a short-term securities. Some practical importance are identification and evaluation of the structure of current assets. They (the funds) are used more efficiently when their greater part is occupied in the production. Stay current assets in circulation - only a necessary condition for the continuity of the process of reproduction, but this part of the enterprise funds is not directly involved in establishing the value of manufactured products. [5, p.. 151]

Structure of working capital - a share of the cost of certain articles of current production assets and funds in the total turnover of working capital. Structure of working capital is considerable variation in individual sectors of the economy. It depends on the composition and structure of production costs, conditions of supply of goods, conditions of production (of the works provided in servants) calculations. If we consider the structure of current assets in certain industries, it should be noted that the coal industry, as has been said, a significant proportion are deferred expenses. This is relatively high preparation costs prior to mining operations (planning for future development of overburden, construction of mines and other). [17, sec. 145] Thus, working capital (working capital) - this means, pre-paid in the current business assets and funds of circulation for the continuity of the process of production, sales and profit.

1.2 Classification and principles of working capital

Company's current assets are classified on three grounds: 1) depending on their participation in the circulation of money; 2) methods of planning, principles of organization and regulation; 3) the sources of formation. According to the first signs of current assets divided by current assets, pre-paid in the current business assets and working capital, pre-paid funds in circulation. This division caused by the availability of working capital funds kruhobihu in two separate areas - the production and circulation areas. The higher proportion of current assets placed in production, the working capital is used efficiently. [17, sec. 146 - 147] Depending on how planning working capital divided by the normalized and normalized The need for allocation of current assets to a normalized and normalized results from feasibility to achieve best results at least cost. Setting standards for selected areas of working capital enables enterprises to ensure business continuity in terms of optimal inventory, size of production idle, remnants of finished products. Called normalized current assets, which obchys lyuyetsya standard. These include inventory, ready to induction, work in progress, prepaid expenses and others. Calculation standards (minimum requirements) for these types of company-defense assets enables them to ensure effective use ample and normal production process. [18, sec. 188] From points is current assets, which are not standard The calculations lyuyetsya.

To irregular working capital include:

- Facilities for goods shipped by the buyer;

- Cash in bank accounts and cash in the company - the remains of temporary facilities to be used for intended use (not included in the budget payments on profits, value added tax, the balance of funds and other economic incentives.)

- Accounts Receivable - temporary diversion of the turnover of one company at the disposal of another. Share of receivables within working capital small irregular, but to further strengthen economic and financial discipline is a challenge every company fully with its reduction;

- Means in the calculations are not directly linked to production activities, ie, in transactions with banks and in terms of special funds, reserves and target financing from the budget. Circulation of businesses are in constant motion, moving from one stage to another circuit. [6. 83] From points Current Assets include funds circulation except finished products in stock.

According to the sources of working capital is divided into: 1) and equal to their own; 2) involved; 3) other. Classification of current assets is important, as it enables the company to determine the optimal composition and structure, needs and sources of working capital. From this largely depends on the financial position of the enterprise. The system of working capital based on certain principles. First, granting autonomy to enterprises rozporyad-tion, management of working capital. This means operational independence in the use of working capital. Second, determine the needs and the planned allocation of working capital for the individual elements and units. Implicit calculation of the optimal requirements for working capital, which would ensure the continuity of the production process, performance targets for the rhythmic work (development of standards and long duration of annual requirements).

Thirdly, the adjustment calculated and applicable regulations including requirements management, change: output, prices for raw materials, suppliers and customers; used forms of payment. Fourth, rational system of financing current assets. This means the formation of working capital from their own resources and raised funds in amounts that provide financial condition to normal. Fifthly, the control over rational deployment and utilization of current assets. This refers to the analysis of efficiency kruhooborotu funds are used to accelerate their rotation. [17, sec. 147 - 148] The need for working capital is calculated for each group to create inventories of stock and in operation. Due to the fact that the cost of little value and wearing items that are in operation, is accounted for net of depreciation, other costs charged to cost of production during the transfer from the operation. 1.3. Cost effectiveness Negotiable funds riznohaluzevyh enterprises in the country represent a significant portion of their material and financial assets.

Therefore, rational and economical use of working capital entity has considerable economic importance. To evaluate the efficiency of working capital production plants use certain indicators, and to improve efficiency - the specific measures. (Fig. 1.2) [5, p.. 156] Effective use of working capital is characterized by their rotation speed, reversibility. Acceleration of turnover of these funds causes: first, increased production per unit cash operating costs of the enterprise, and secondly, the release of funds and thus create additional reserves to expand production. Turnover ratio (turnover number) is calculated by dividing cost of sales at current wholesale prices for the period to the average balance of current assets over the same period. Index, which is inverse with respect to the number of turns, promoted as the load factor. It shows how much working capital (in units of shares) falling within each currency sales. [5, p.. 157]

Duration one turnover in days (or turnover rate) of working capital is defined as the ratio of the number of days in billing period (for the quarter - 90 days of the year - 360 days) and ratio of the same period. To characterize the economic efficiency of working capital can apply their rate of return, calculated as the ratio of profits to the sum of its current assets.

As a result of accelerated turnover of financial (cash) costs reduced demand for them, the process of release of these funds with turnover. There are absolute (decrease the

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