Financial management - managing the finances of business entities, financial analysis, planning, as well as finding and distributing capital. It covers all major areas of finance and extends to all segments of the financial market. Financial management is also a type of management activity. It is a system of influence of the subject of financial management ( financial manager) to its object in order to improve the latter. In addition, financial management is a form of entrepreneurship.
Financial management is interconnected with cost accounting, marketing, and planning.
Cost accounting had a significant positive impact on the economy of enterprises. However, its possibilities in terms of administrative management are limited. Separate elements of cost accounting, in particular self-sufficiency and self-financing, control by the ruble, material responsibility, material interest, have achieved great development in a market economy. Cost accounting is necessary not only for a state enterprise in conditions of public ownership of the means of production, but also for a private enterprise, commercial organization under private ownership.
Cost accounting as a method and style of management is in many ways similar to management. However, one should not assume that cost accounting cancels or replaces management, just as management does not cancel cost accounting. Competition is at work here, which creates favorable ground for the development of cost accounting and management at the same time.
Marketing means market research, marketing system. Marketing is not only the science of selling, but also of managing, it is a kind of human activity aimed at satisfying needs and requirements through exchange. In the 50s of the last century, marketing theory joined with management theory. As a result, an applied science of managing companies based on the principle of marketing has emerged, called the “market management theory”. Marketing is the concept of managing the development, production and distribution of a product. Marketing affects management, closely interacts with it and intertwines. Their interrelation guarantees the success of entrepreneurship.
Planning is a system of planned decisions of a firm, which, as a participant in the market system, is forced to obey the price mechanism, the law of supply and demand, since it cannot cancel their actions.
By applying planning, the firm eliminates the costs that it could have if all actions within the firm were performed on the basis of buying and selling. By canceling such relationships, she avoids additional costs.
Planning is one of the functions of management. Financial management brings together the planning of material, technical, labor and financial resources, ensuring their balance. Financial planning in our case has an intracompany orientation and is reflected in a special section of the business plan.
1. Calculation of the financial cycle.
2. Coefficients of autonomy and bankruptcy forecast..
3. Analysis of the movement and forecasting of cash flow.
4.Indicators of profitability of the enterprise.
5a. Analysis and management of inventories.
5b. Types of financial stability of the enterprise.
6. Analysis and management of receivables.
7.Coefficients of current, urgent and absolute liquidity.
8. Basic theories of capital structure (traditional and Modigliani-Miller theory).
9.Coefficients of accounts receivable and accounts payable at the enterprise.
10.Evaluation of ordinary and preferred shares.
11.Formirovanie cash management policy of the enterprise.
12.Methods for evaluating investment projects.
13. Problems of intra-company financial planning.
14. Classification of financial instruments and markets.
15. Indicators of the property status of the organization.
16. The basic concept of the price of capital.
17. The structure of the balance sheet and its characteristics.
18. Valuation of bonds.
19. Problems of formation and renewal of fixed capital in the organization
20.Method of calculating the critical volume of sales.
21.Tax policy of the enterprise.
22. Interest rates and methods of their calculation.
23.Sources of the formation of own working capital.
24. Methods for predicting the possible bankruptcy of an enterprise.
25.Financial reporting and analysis financial condition enterprises.
26.Leveridzh and its role in financial management.
27. System of indicators of enterprise profitability.
28. Information support of financial management.
29. Estimation of balance liquidity.
30. Financial planning at the enterprise.
31. Stocks of the enterprise and their structure.
32. Essence of planning cash flows.
33. Coefficients of security with own working capital, bankruptcy forecast.
34.Goals and objectives of financial management.
35. profit and its types.
36. Essence of management working capital.The importance of cash management.
37. Types of financial stability of enterprises.
38. Choice of working capital management policy.
39.Coefficients of autonomy, the ratio of own and borrowed funds, maneuverability
40. Place and role of finance in social production.
41. Break-even point.
42.Working capital: basic concepts.
43 Liquidity ratios: current, term and absolute
44. Forecasting solvency indicators.
45. Own and borrowed resources of the enterprise.
46. Calculation of the creditworthiness index.
47. Essence of rationing working capital.
Calculation of the financial cycle.
Working capital in the process of its use can be in different forms. Each enterprise buys raw materials, processes them, manufactures finished products and sells them on credit. We can say that the funds go through a full operating cycle.
The cash flow during the operating cycle goes through the following main stages, consistently changing its forms:
– funds are used to purchase raw materials and materials;
- stocks of raw materials, materials as a result of direct production activities are converted into a stock of finished products;
- stocks of finished products are sold to customers and before they are paid are converted into receivables;
- Collected (paid) receivables are again converted into cash, some of which can be stored in the form of highly liquid short-term financial investments until their production demand.
The production cycle begins with the receipt of raw materials and materials at the warehouse of the enterprise and ends with the shipment of finished products to the buyer.
The duration of the production cycle of a commercial organization is determined by the following formula:
Ppc \u003d Osm + Onzp + Ogp, where Ppc is the duration of the production cycle in days;
Osm - the duration of the turnover of the average stock of raw materials, materials and semi-finished products in days; Onzp - the duration of the turnover of the average volume of work in progress in days;
Ogp - the duration of the turnover of the average stock of finished products in days.
The financial cycle begins from the moment the supplier pays for the purchased raw materials and supplies (payment of accounts payable) and ends at the moment of receipt of money from buyers for shipped products (payment of accounts receivable).
The duration of the financial cycle is determined as follows:
Ofc \u003d Ppc - Okz \u003d Omz + Odz - Okz, where Okz - average balances of accounts payable / production costs; Omz - average inventory balances / production costs;
Oz - average balances of subsidiaries / sales proceeds.
The operating cycle characterizes the total time during which financial resources are in stocks and receivables.
The duration of the operating cycle is calculated by the formula
Pots \u003d Ppc + Odz.
Calculation of the financial cycle is the basis of planning and cash management. The enterprise must constantly strive to reduce the production and financial cycle. To do this, they can use various measures: rationing of working capital; reducing the cost of production; optimization of production stocks; optimization of the delivery of raw materials and materials; optimization of delivery and storage of finished products; receivables management; cash management; reduction of the production cycle; reduced need for inventory; effective pricing policy; application of a logical approach, etc.
The choice of an option for reducing the production and financial cycles is made on the basis of a comparison of the effectiveness of each option. Reducing the duration of these cycles reduces the need for working capital.
Autonomy coefficients and bankruptcy forecast.
autonomy coefficient.
The autonomy coefficient shows the share of own capital in the liability of the company's balance sheet, i.e. the degree of independence of the enterprise from borrowed funds. A high autonomy ratio reflects minimal financial risk and good opportunities to raise additional funds from outside. The growth of this coefficient indicates an increase in the independence of the enterprise. Theoretically, the normative value of the coefficient should be equal to or greater than 0.5 (50%). This means that all obligations of the enterprise can be covered by its own funds. The growth of the coefficient in the general case indicates an increase in the independence of the enterprise.
Bankruptcy forecast coefficient (Kpb) is calculated by the formula: Kpb = (Znds + NLA - P5) / WB, where Znds - stocks and VAT; NLA - the most liquid assets; P5 - short-term liabilities; VB - balance currency.
The coefficient shows the ability of the enterprise to pay off its short-term obligations, subject to a favorable sale of reserves. The higher the value of the indicator, the lower the risk of bankruptcy.
"Financial management", 16. 02. 2010
Section 1 "Essence and organization of financial management at the enterprise"
1. Financial management is. . . .
1. public administration finance
2. management of financial flows of a commercial organization in a market economy +
3. management of financial flows of a non-profit organization +
2. What functions do the finances of organizations perform?
1. reproductive, control, distribution.
2. control, accounting
3. distribution, control +
3. Who forms the financial policy of the organization?
1. Chief Accountant organizations
2. financial manager +
3. head of an economic entity
4. The main goal of financial management is. . .
1. development of the financial strategy of the organization
2. growth of dividends of the organization
3. maximizing the market value of the organization +
5. The objects of financial management are. . .
1. financial resources, non-current assets, wage essential workers
2. profitability of products, capital productivity, liquidity of the organization
3. financial resources, financial relations, cash flows +
6. What is the controlling subsystem of financial management?
1. directorate of a commercial organization
2. financial department and accounting +
3. marketing service organization
7. Basic official duties financial management is included. . .
1. management of securities, stocks and debt capital +
2. liquidity management, organization of relationships with creditors +
3. financial risk management, tax planning, development of an organization's development strategy
8. The main concepts of financial management include concepts. . .
1. double entry
2. compromise between return and risk +
3. delegation of authority
9. Treat primary securities. . .
3. forwards
10. Treat secondary securities. . .
1. bonds
2. bills
3. futures +
11. "Golden Rule"Financial management is...
1. a ruble today is worth more than a ruble - tomorrow +
2. income increases as risk decreases
3. the higher the solvency, the less liquidity
12. Equal payments or receipts Money at regular intervals when using the same interest rate is. . . .
1. annunity +
2. discounting
13. If uniform payments of the enterprise are made at the end of the period, then such a flow is called. . .
1. prenumerando
2. perpetuity
3. postnumerando +
14. Derivative securities include. . .
1. company shares
2. options +
3. bonds
15. Can be attributed to the financial market. . .
1. labor market
2. capital market +
3. sectoral commodity market
16. The organization mobilizes its funds for. . .
1. insurance market
2. communication services market
3. stock market +
17. The organization attracts short-term loans for. . .
1. capital market
2. insurance market
3. money market +
18. Of the listed sources of information for a financial manager, external ones are. . .
1. balance sheet
2. Forecast of socio-economic development of the industry +
3. cash flow statement
19. Of the listed sources of information, it refers to internal ones. . .
1. inflation rate
2. income statement +
3. statistical compilation data
20. External user of information are. . .
1. investors +
2. financial manager of the organization
3. chief accountant of the organization
21. Foundation information support financial management is. . .
1. accounting policy of the organization
2. balance sheet +
3. income statement +
22. A financial mechanism is a combination of:
1. forms of organization of financial relations, methods of formation and use of financial resources used by the enterprise +
2.ways and methods financial settlements between enterprises
3. ways and methods of financial settlements between enterprises and the state
23. The financial tactics of an enterprise are:
1. solving problems of a specific stage of enterprise development +
2. setting a long-term course in the field of enterprise finance, solving large-scale problems
3. development of fundamentally new forms and methods of redistribution cash funds enterprises
24. Financial management is:
1. scientific direction in macroeconomics
2. science of public finance management
3. Practical activities company cash flow management
4. financial management of an economic entity +
5. academic discipline that studies the basics of accounting and analysis
25. Components of the financial mechanism:
1. financial methods, financial leverage, financial settlement system
2. financial methods, financial leverage, legal, regulatory and information support
3. financial methods, financial leverage, financial settlement system, information support +
26. Financial managers should primarily act in the interests of:
1. workers and employees
2. creditors
3. government bodies
4. strategic investors
5. owners (shareholders) +
6.buyers and customers
Section 2 "Financial analysis and planning"
1. Turnover indicators characterize. . . .
1. solvency
2. business activity +
3. market stability
2. The indicator of return on assets is used as a characteristic:
1. profitability of capital investment in the property of the organization +
2. current liquidity
3. capital structure
3. Evaluation indicators business activity are. . .
1. working capital turnover +
2. coverage ratio
3. autonomy coefficient
4. The ratio of inventory turnover of raw materials and materials is defined as a ratio. . .
1. the volume of stocks of raw materials and materials for the period to profit from sales
2. the volume of stocks of raw materials and materials for the period to the volume of sales for the period
3. the cost of used materials to the average value of stocks of raw materials and materials +
5. Of the above components of current assets, the least liquid. . . .
1. production stocks +
2. accounts receivable
3. short-term financial investments
4. Prepaid expenses
6. Absolute liquidity ratio shows. . . .
1. what part of all liabilities the organization can repay in the near future
2. what part of the organization's short-term liabilities can be repaid in the near future +
3. what part of the organization's long-term liabilities can be repaid in the near future
7. The critical liquidity ratio shows. . .
1. what part of long-term liabilities the organization can repay by mobilizing absolutely liquid and quick-selling assets
2. what part of short-term liabilities the organization can repay by mobilizing absolutely liquid and quick-selling assets +
3. What part of the organization's short-term liabilities can be repaid by mobilizing all current assets.
8. Current ratio shows. . . .
1. what part of the equity capital the organization can cover by mobilizing current assets
2. what part of long-term liabilities the organization can repay by mobilizing absolutely liquid and fast-moving assets
3. what part of short-term liabilities the organization can repay by mobilizing all current assets +
9. If in the composition of the sources of funds of the enterprise 60% is occupied by equity then it says. . .
1. about a sufficiently high degree of independence +
2. about a significant share of diversion of the organization's funds from direct turnover
3. on strengthening the material and technical base of the organization
10. The accounts payable turnover ratio shows opportunity. . . .
1. increase in commercial credit +
2. reducing commercial credit
3. rational use of all types of commercial loans
11. Under the financial plan is understood. . .
1. cost estimate for production
2. planning document reflecting the costs of production and sales of products
3. planning document reflecting the receipt and expenditure of funds of the organization +
12. The task of financial planning is. . . .
1. development of the financial policy of the organization
2. providing the necessary financial resources for all types of activities of the organization +
3. development of the accounting policy of the organization
13. The process of drawing up financial plans consists of. . . .
1. analysis of financial indicators of the previous period, preparation of forecast documents, development of an operational financial plan +
2. determining the profitability of manufactured products
3. calculation of the effectiveness of the investment project
14. Drawing up the financial section of a business plan begins with the development of a forecast. . .
1. production volumes
2. sales volumes +
3. cash flow
15. With an increase in the natural volume of sales and other unchanged conditions, the share variable costs as part of sales proceeds:
1. decreases
2. does not change
3. increases +
16. Liquidity ratios show. . . .
1. the degree of profitability of the main operations
2. the ability to cover their current liabilities at the expense of current assets +
3. the company has current debts
17. The highest level of business risk is observed in enterprises that have. . . . . . .
1. equal shares of fixed and variable costs
2. large share fixed costs +
3. high level of variable costs
19. When optimizing the assortment, one should focus on the choice of products from. . . . . .
1. the largest share in the sales structure +
2. the minimum value of the total unit costs
3. the maximum values of the coefficient "marginal profit/revenue"
20. With additional production and sale of several types of products, the maximum low price equal to them. . . . . . . . per item
1. full cost
2. the sum of fixed, variable costs and profits
3. marginal costs (variable costs) +
21. With an increase in sales from sales, fixed costs:
1. increase
2. do not change +
3. decrease
22. Marginal profit is. . . . . . .
1. profit after taxes
2. revenue minus direct costs
3. gross profit before taxes and interest
4. revenue minus variable costs +
23. Critical volume of sales in the presence of losses from the sale. . . . . . . . . . . . . . actual sales proceeds
24. The division of the costs of the enterprise into fixed and variable is carried out in order to:
1. determining the amount of revenue required for simple reproduction
2. definition of production and full cost
3. profit planning and profitability +
4. determination of the minimum required volume of sales for break-even activity +
25. The combined impact of operating and financial leverage measures. . . . . .
1. investment attractiveness of the company
2. a measure of the total risk of the enterprise +
3. competitive position of the enterprise
4. degree financial stability companies
26. Fixed costs as part of sales proceeds are costs, the amount of which does not depend on:
1. salaries of management personnel
2. depreciation policy of the enterprise
3. natural volume of sold products +
27. The concept of "profitability threshold" (critical point, break-even point) reflects:
1. the ratio of profit from sales to sales proceeds (excluding taxes)
2. proceeds from the sale, in which the enterprise has neither losses nor profits +
3. the minimum amount of revenue required to reimburse the fixed costs of production and sales of products
4. the value of the ratio of profits to production costs
5. net income of the enterprise in monetary form required for extended reproduction
28. With an increase in the natural volume of sales, the amount of variable costs:
1. increases +
2. decreases
3. does not change
29. The turnover ratio of working capital characterizes. . . . . . . . . .
1. the ratio of own funds in relation to the amount of funds from all possible sources
2. the amount of proceeds from sales per one ruble of working capital +
3. the ratio of the volume of proceeds from the sale of products to the average annual cost of fixed assets
30. The following are involved in the calculation of the break-even point:
1. total costs and mass profits
2. fixed costs, specific variable costs, sales volume +
3. direct, indirect costs and sales volume
31. With an increase in sales proceeds, the share of fixed costs in the total cost of products sold:
1. does not change
2. increases
3. decreases +
32. Variable costs include:
1. piecework wages of production personnel +
2. material costs for raw materials and materials +
3. administrative and management expenses
4. interest on a loan
5. depreciation charges
33. The share of variable costs in the proceeds from sales in the base period at enterprise A is 50%, at enterprise B - 60%. In the next period, both enterprises are expected to reduce the natural volume of sales by 15% while maintaining the basic prices. The profit of the enterprise is reduced:
1. the same
2. in more at enterprise A +
3. to a greater extent in enterprise B
34. Operating leverage evaluates:
1. cost of products sold
2. a measure of profit sensitivity to changes in prices and sales volumes +
3. degree of profitability of sales
4. sales proceeds
35. The duration of one revolution in days is defined as. . . . . . . . . . .
1. the product of working capital balances by the number of days in the reporting period, divided by the volume of products sold
2. the ratio of the average annual cost of working capital to the proceeds from the sale of products
3. the ratio of the amount of the average balance of working capital to the amount of one-day revenue for the analyzed period +
Section 3 "Methodological bases for making financial decisions"
1. The financial flow is fully related. . .
1. receipt of loans, issue of new shares, payment of dividends +
2. profit, depreciation, payment of interest on a loan
3. sales proceeds, profits, loans.
2. Market value valuable papers arises. . .
1. at the time of the decision to issue securities
2. at the initial placement of securities
3. in the secondary financial market +
3. The value of a security in the stock market is affected. . . .
1. the organization's need for additional attraction of cash flows
2. rate of return +
3. marketing policy organizations
4. Current yield of a bond with a face value of 10,000 rubles. with a coupon rate of 9% per annum, if the purchase price was 9000 rubles. , is equal to. . .
5. If the purchase price of a discount bond was 1000 rubles. , and the redemption price is 1200 rubles. , then its profitability is equal. . . .
6. If the amount of dividends paid is 120 rubles. , and the loan interest rate is 12%, then the market value of the share will be equal to. . .
2. 1000 rub. +
7. Bonds are brought to its owner. . .
1. coupon income +
2. dividends
3. operating income
8. If the amount of expected dividends per share is 50 rubles. , the purchase price of a share is 1000 rubles. , then the preferred stock's dividend yield will be . .
9. If the current dividend is 30 rubles. per share, the purchase price of a share is 1500 rubles. , the expected growth rate of dividends is 3% per year, then the rate of return on an ordinary share will be equal to. . .
10. An indicator that characterizes the quantitative measurement of risk is. . .
1. coefficient of variation +
2. current yield
3. standard deviation of expected return
11. Discounting is:
1. determination of the present value of future cash +
2. accounting for inflation
3. Determination of the future value of today's money
12. The internal rate of return means. . . . . . . . . . . . . . . . . . project
1. unprofitable
2. break even
3. profitability +
13. When comparing alternative equal-period investment projects, the following criterion should be used as the main one:
1. payback period
2. net present value (NPV) +
3. internal rate of return
5. accounting rate of return
6. net discounted cash income ratio (NPVR)
14. Bank deposit for the same period increases more when interest is applied
1. simple
2. complex
3. continuous +
15. The annuity method is applied when calculating:
1. the balance of the debt on the loan
2. equal amounts of payments for a number of periods +
3. interest rates on deposits
16. Leasing is used by the enterprise for:
1. replenishment of own sources of financing
2. obtaining the right to use the equipment
3. acquisition of equipment and other fixed assets +
17. It is advisable to make investments if:
1. their net present value is positive +
2. internal rate of return is less than the weighted average cost of capital provided to finance investments
3. their profitability index is zero
18. The term "opportunity cost" or "lost profit" means:
1. income that the investor refuses by investing in another project +
2. level of bank interest
3. variable costs of raising a given amount of funds
4. yield of government securities
19. When using a long-term loan, the calculation of annual total payments using the annuity method. . . . . . . . . . . . . . . . . . . . . total loan payments
1. reduces
2. increases +
3. does not change
20. The loan is used by the enterprise for:
1. replenishment of the enterprise's own sources of financing
2. purchase of equipment with insufficient own funds +
3. obtaining the right to use the equipment
Section 4 "Basics of making investment decisions"
1. Investments in fixed capital include. . . .
1. purchase of securities
2. building a workshop +
3. work in progress
2. Investment is. . .
1. funds directed to capital construction and production consumption
2. capital investment in the development of the organization with the aim of making a profit
3. investment of funds, securities and other property with a monetary value, for profit and (or) to achieve another beneficial effect +
3. Simple rate of return shows. . .
1. the share of current costs in the cash flow of the organization
2. the share of investment costs returned to the organization in the form of net profit over a certain period of time +
3. the share of variable costs in the total costs of the organization
4. The payback period of the project with a uniform cash flow is a ratio. . .
1. net cash flow to the amount of investment costs
2. total cash receipts to invested costs
3. free cash flow to the amount of investment costs +
5. The current present value of the project NPV shows:
1. average profitability of an investment project
2. the discounted amount of profit received from the implementation of the investment project +
3. the discounted value of the gross profit from the sale of finished products
1. the level of income from the implementation of the project per 1 rub. investment costs +
2. share of cash receipts
3. share of cash outflows in gross cash flow
7. The indicator of the internal rate of return is. . .
1. the price of capital, below which the investment project is not profitable
2. average discount rate for borrowing
3. investment project discount rate at which the net present value of the project is zero +
8. Modified internal rate of return assumes. . . .
1. discounting of income received during the implementation of the investment project
2. reinvestment of income from the investment project at the cost of capital +
3. discounting of investment costs required for the implementation of the investment project
9. Uncertainty about future cash flows is caused. . .
1. incomplete or inaccurate information about the conditions for the implementation of the investment project +
2. incorrect accounting for the impact of inflation on the amount of cash flow
3. incomplete information about the amount of investment costs
10. Non-standard cash flow suggests. . .
1. the predominance of positive cash flows inflows in the process of implementing an investment project
2. the predominance of negative cash flows inflows in the process of implementing the investment project
3. alternation in any sequence of outflows and inflows in the process of implementing an investment project +
11. Discount rate adjustments are implied. . .
1. introduction of adjustments to the risk-free or minimum acceptable discount rate +
2. determination of the risk-free discount rate
3. achieving the maximum allowable discount rate
Section 5 Capital Structure and Dividend Policy
1. The criteria for dividing the capital of an organization is. . .
1. standardized and non-standardized
2. attracted and borrowed
3. own and borrowed +
2. It affects the volume and structure of own capital. . .
1. organizational and legal form of management +
2. the amount of depreciation
3. amount of working capital
3. Advantages of own sources of capital financing - this. . .
1. high price of attraction compared to the price of borrowed capital
2. Ensuring financial stability and reducing the risk of bankruptcy +
3. loss of liquidity of the organization
4. The disadvantages associated with the attraction of borrowed capital are. . .
1. reduction of financial risks
2. low cost of attraction and the presence of a "tax shield"
3. the need to pay interest for the use of borrowed capital +
5. The elements of capital are. . .
1. long-term credits and loans +
2. fixed capital
3. accounts payable
6. If the amount of the dividend paid on preferred shares amounted to 200 rubles. per share, and the market price of a preferred share is 4000 rubles. , then the price of capital formed at the expense of preferred shares is equal to. . . .
7. If dividends are 300 rubles. per share, the market price of an ordinary share is 6000 rubles. , the annual growth rate of dividend payments is steadily increasing by 5%, the cost of additional emission is 2% of the issue volume, then the price of the source of capital raised through the additional issue of ordinary shares will be equal to. . .
8. If the interest rate for a loan is 10%, the income tax rate is 24%, then the cost of capital raised through loans and borrowings will be equal. . .
9. The price of capital is used in the following management decision. . .
1. Estimating the need for working capital
2. management of receivables and payables
3. assessment of the market value of the organization +
10. Dividends on shares are paid out. . .
1. Sales proceeds
2. net profit +
3. retained earnings
11. The dividend irrelevance theory is characterized by the following type of investor behavior. . .
1. Shareholders do not care what form the distribution of net profit will take +
2. Shareholders prioritize current dividend payouts
3. Shareholders prioritize capital gains
12. The "bird in hand" theory is characterized by the following type of investor behavior. . . .
1. shareholders do not care in what form the distribution of net profit will be carried out
2. shareholders prioritize capital gains
3. Shareholders prioritize current dividend payouts +
14. Dividend decisions are subject to the following restrictions. . .
1. depreciation policy chosen by the organization
2. legal restrictions +
3. accounting policy of the organization
15. The dividend yield of an ordinary share is an indicator calculated as. . .
1. the ratio of net income less dividends on preferred shares to the total number of ordinary shares (DPS) +
2. The ratio of the market price of a share to earnings per share
3. the ratio of the dividend paid on a share to its market price
16. Dividend yield shows. . . .
1. the share of returned capital invested in the shares of the organization
2. the share of net profit paid by the shareholders of the organization in the form of dividends
3. share of the dividend paid on ordinary shares in the amount of earnings per share +
17. Dividend yield is a constant in the following dividend payout methods. . .
1. Residual Dividend Method and Fixed Dividend Method
2. The method of constant percentage distribution of profits and the method of fixed dividend payments +
3. method of payment of the guaranteed minimum and extra-dividends and the method of fixed dividend payments
18. The source of payment of dividends in accordance with the legislation of the Russian Federation is. . .
1. net profit of the current year +
2. gross profit of the organization
3. income from unrealized transactions
19. The following method of dividend payments contributes to smoothing fluctuations in the market value of shares. . . .
1. method of constant growth of dividend payments +
2. Residual dividend method
3. methodology for paying the guaranteed minimum and extra dividends
20. To obtain reliable information about profits joint-stock company should use:
1. balance sheet of a joint-stock company
2. results of audits
3. income statement +
21. Source of payment of dividends on preferred shares in case of a lack of profit from a joint-stock company:
1. issue of bonds
2. additional issue of shares
3. reserve fund +
4. short-term bank loan
5. issue of a bill
22. The effect of financial leverage means:
1. increase in the share of equity
2. increase in return on equity when using borrowed sources +
3. increase in cash flows
4. acceleration of the turnover of current assets
23. Redemption of own shares is carried out in order to:
1. reduce the company's liabilities
2. maintaining the market value of the company +
3. reduce the cost of equity financing
24. financial leverage calculated as a ratio:
1. equity to debt
2. debt capital to equity +
3. earnings to equity
25. An additional issue of shares is carried out:
1. in order to maintain control
2. in order to maintain the market rate
3. in order to minimize taxes
4. in order to obtain additional external funding +
26. Net assets companies are:
1. company equity
2. value of assets available for distribution among shareholders after settlements with creditors +
3. the difference between equity and the amount of losses
Section 6 "Sources of financing economic activity»
1. The main ways of financing economic activities:
1. issue of shares
3. all of the above +
2. Venture capital is used:
1. to finance the activities of fast-growing and high-risk firms +
2. to finance state-owned enterprises
3. to finance companies whose shares are publicly traded on the stock market
3. Upon the expiration of the financial lease, the lessee:
1. retains the rental object
2. buys the leased object from the lessor at the original cost
3. can return the leased object, conclude an agreement or redeem the object at the residual value +
4. For manufacturing enterprise leasing allows:
1. update fixed assets by dispersing costs over time +
2. in case of failure of the equipment, stop leasing payments
3. in case of a production need, sell the leasing object at market value
5. Financial leasing is:
1. long-term agreement covering a large cost of rented equipment +
2. short-term rental of premises, equipment, etc.
3. long-term lease, involving partial redemption of equipment.
6. What is not a source of financing for the enterprise:
1. forfaiting
2. depreciation charges
3. R&D costs +
4. mortgage
Section 7 "Working Capital Management"
1. The cash flow of the organization is. . . .
1. the totality of the financial resources of the organization
2. the presence of an optimal balance of funds on the current account
3. the amount of receipts and payments of funds for a certain period of time +
2. Cash flow from investment activities is. . .
1. long-term loans and credits
2. advances from buyers
3. income from financial investments +
3. Cash flow from operating activities is. . .
1. financial investments
2. repayment of receivables +
3. payment of dividends to the owners of the organization
4. The main indirect method for calculating net cash flow are. . .
1. net profit and depreciation charges +
2. cash balance and changes in assets and liabilities
3. liquid cash flow and sales revenue
5. The full production cycle of the organization is determined. . .
1. the period of turnover of work in progress, the period of turnover of stocks of finished products, the period of turnover of receivables
2. the period of turnover of industrial stocks, the period of turnover of work in progress, the period of turnover of stocks of finished products +
3. the period of turnover of stocks of finished products, the period of turnover of work in progress, the period of turnover of accounts payable
6. The financial cycle is. . .
1. the time interval between the payment deadline for your obligations to suppliers and the receipt of money from buyers +
2. the period during which the receivables are fully repaid
3. the period during which the accounts payable are fully repaid
7. Permanent working capital. . .
1. shows the required maximum working capital for the implementation of uninterrupted production activities
2. shows the average amount of working capital for the implementation of uninterrupted production activities
3. shows a minimum of current assets for the implementation of uninterrupted production activities +
8. The conservative policy of working capital management is characterized. . .
1. a high proportion of current assets in the composition of all assets of the organization
2. low specific gravity short-term loan as part of liabilities or its absence +
3. average turnover period of working capital
9. Aggressive working capital management policy complies. . .
1. average level of short-term credit in liabilities
2. low share of short-term loans in liabilities or its absence
3. high share of short-term loans in all liabilities +
10. What is the relationship between order lot size and ordering costs?
1. the larger the batch size, the lower the total transaction costs for placing orders +
2. The smaller the batch size, the lower the total transaction costs for placing orders
3. the larger the batch size, the higher the total transaction costs for placing orders
11. The amount of total receivables depends on. . . .
1. amount of accounts payable
2. sales volumes of goods on credit +
3. sales volumes of goods
12. Accounts receivable is considered normal provided that. . .
1. the debt will be repaid in 14 months
2. the debt will be repaid in 12 months +
3. the debt will be repaid in 16 months
13. The following issues are addressed in the process of receivables management. . .
1. control over the growth of labor productivity and cost reduction
2. profit planning and inventory optimization of the organization
3. control over the structure of receivables in the context of debtors and assessment of its liquidity +
Section 8 "Special Sections of Financial Management"
1. Crisis is. . .
1. chronic insolvency of the organization +
2. excess of accounts payable over accounts receivable
3. use of loans for the acquisition of working capital
2. Which of the following crises characterizes the crisis of the regularity of occurrence?
1. short-term
2. disastrous
3. cyclic +
3. Which of the following crises characterizes the crisis by source of origin?
1. elemental +
2. painful
3. short-term
4. Signs of a potential crisis are. . .
1. decrease in free cash flow +
2. destructive impact of the external environment
3. quasi-normal state of the organization
5. Signs of the latent stage of the crisis are. . .
1. no real symptoms of a crisis
2. decrease in free cash flow +
3. Decreased profitability of products and organization
6. The factors causing the crisis and related to the "far" environment of the organization are. .
1. economic growth rates in the country +
2. managerial
3. financial
7. Symptoms of a crisis situation are. . .
1. the presence of overdue receivables
2. excess own working capital
3. decrease in income from the main activities of the organization +
8. An indicator characterizing the entry of an organization into a crisis zone is. .
1. break-even point of manufactured products +
2. the amount of variable costs
3. contribution margin
9. External signs the insolvency of the organization is. . .
1. failure to fulfill the requirements of creditors within two months
2. failure to fulfill the requirements of creditors within three months +
3. unsatisfactory structure of the balance sheet
10. The bankruptcy procedure is carried out for the purpose. . .
1. Sales expansion
2. cost reduction
3. repayment of all types of debts of the organization +
11. The real bankruptcy of the organization occurs when. . .
1. loss of capital +
2. low profitability
3. rising production costs
12. Deliberate bankruptcy of an organization occurs when. . .
1. late payment of debt obligations
2. using the organization's funds for the personal enrichment of its management +
3. intentionally misleading creditors in order to obtain installment payments
13. Bankruptcy reorganization procedures include. . .
1. forced liquidation
2. voluntary liquidation
3. pre-trial sanitation +
14. The two-factor model of E. Altman is based on. . .
1. coefficients of current liquidity and financial dependence +
2. turnover ratios and current liquidity
3. profitability ratios and capital structure
15. The W. Beaver coefficient is based on. . . .
1. Current ratio and capital structure
2. net profit, depreciation and amount of liabilities +
3. profitability and asset turnover
1. current liquidity and profitability ratios
2. coefficients of financial independence and asset turnover
3. liquidity and financial independence ratios +
18. Purpose crisis management from a financial management standpoint,. . . .
1. profit maximization and product portfolio optimization
2. restoration of financial stability and solvency +
3. reduction of accounts payable and receivable of the organization
19. The subsystem of anti-crisis management is formed. . .
1. strategic management, reengineering, benchmarking +
2. tactical control, crisis management, marketing
3. personnel management, restructuring, insolvency management
20. The formation of the "competitive estate" of the organization involves. . .
1. restructuring
2. risk management
3. bankruptcy management +
21. Indicators for monitoring property status are. . .
1. Capacity utilization rate
2. depreciation rate of fixed assets +
3. market value of the organization
22. Monitoring indicators for assessing the financial condition of an organization are. . .
1. profit +
2. volume of production and sales of products
3. the value of non-current assets and their share in the total assets
23. Bankruptcy prevention includes. . .
1. full mobilization of internal financial reserves
2. organization reorganization
3. Restoring financial stability and ensuring financial balance +
24. The principles underlying crisis management are. . .
1. continuous monitoring of the financial condition of the organization
2. differentiation of symptoms of an uncontrollable crisis according to the degree of their danger to the viability of the organization +
3. "cutting off the excess", leading to a decrease in the size of current external and internal financial obligations in the short term
25. The following measures of financial recovery correspond to the stage of restoring the solvency of the organization. . .
1. acceleration of collection of receivables, use of factoring +
2. prolongation of short-term loans and borrowings
3. acceleration of the turnover of working capital
26. Forms of financial recovery are. . .
1. prolongation of short-term accounts payable
2. optimization of the assortment policy of the organization
3. vertical merger of organizations +
27. Sanitation of an organization without preserving its legal entity is. .
1. transfer of the organization for rent +
2. conglomerate merger of the organization
3. restructuring
Friends! You have unique opportunity help students like you! If our site helped you find the right job, then you certainly understand how the work you added can make the work of others easier.
If the Test, in your opinion, is of poor quality, or you have already seen this work, please let us know.
Topic 6. Financial planning and forecasting
Question 1. Strategic, long-term and short-term financial planning
Kreinina M.N. Financial management: Proc. settlement - M .: Delo and Service, 1998. - 304 p., P. 195-212.
9.1. Planning of income and expenses of the enterprise
Financial planning covers the most important aspects of the enterprise; it provides the necessary preliminary control over the formation and use of material, labor and monetary resources, creates the necessary conditions to improve the financial condition of the enterprise.
Financial planning at the enterprise is interconnected with the planning of economic activity and is based on other indicators of the plan (volume of production and sales, cost estimates for production, capital investment plan, etc.). However, drawing up a financial plan is not a simple arithmetic conversion of production indicators into financial indicators.
In the process of drafting a financial plan, a critical approach to indicators is carried out production plan, on-farm reserves not taken into account in them are identified and used, methods are found for more efficient use of the production potential of the enterprise, more rational use of material and monetary resources, increasing the consumer properties of products, etc.
In the process of developing a financial plan, the following are determined: the costs of products sold, sales proceeds, cash savings, depreciation, the volume and sources of financing of investments planned for the planned period, the need for working capital and sources of its coverage, the distribution and use of profits, relationships with the budget, extrabudgetary funds, banks.
Financial planning at the enterprise has the following target orientation:
1. Providing financial resources and funds for the activities of the enterprise.
2. Increasing profits from core activities and other activities, if any.
3. Organization of financial relationships with the budget of extra-budgetary funds, banks, creditors and debtors.
4. Ensuring a real balance of planned income and expenses.
5. Ensuring the solvency and financial stability of the enterprise.
The traditional form of a financial plan is the balance of income and expenses. The work on drawing up a financial plan is carried out in several stages:
the first stage is an assessment of the fulfillment of the financial plan for the previous period;
the second stage is the consideration of projected production indicators, on the basis of which a financial plan will be drawn up;
the third stage is the development of a draft financial plan.
In order to be more efficient and take into account inflation, it is advisable to draw up a balance of income and expenses by quarters of the planned year.
To draw up a balance of income and expenses, it is necessary to have the following calculations as a base: sales proceeds; profit and directions of its spending; needs for own working capital; the amount and use of depreciation; sizes and directions of use of the repair fund, etc.
The balance of income and expenses can be drawn up in the context of the following items.
I. Income and receipts.
1. Revenue from the sale of products (works, services)
including: 1.1. Profit from sale.
2. Income from non-operating transactions.
3. Other operating income.
4. Depreciation.
5. Repair fund.
6. Funds deducted from the cost of production:
6.1. To pay taxes and other obligatory payments attributable to cost.
6.2. To pay interest on loans.
7. Growth of sustainable liabilities.
8. Surplus working capital at the beginning of the planning period.
9. Income from the initial issue of shares.
10. Other income.
Total income and receipts.
11. Expenses and deductions.
1. Costs for sold products and services at full planned cost, including losses from sales.
2. Value added tax paid to suppliers.
3. Capital investments.
4. The cost of repairing fixed assets.
5. Deductions from profits for accumulation and consumption.
6. Rent.
7. Contributions to the reserve and other special funds.
8. Other operating expenses.
9. Other non-operating expenses.
Total expenses and deductions.
III. Relations with the budget, off-budget funds and banks.
1. Income tax.
2. Value added tax.
3. Property tax.
4. Other taxes included in the cost and paid out of financial results.
5. Payments to off-budget funds.
6. Repayment of long-term bank loans.
7. Payment of interest on loans.
Total payments.
1. Income and receipts of funds.
2. Expenses, deductions and payments.
The balance of income and expenses is formed on the basis of an analytical generalization of the results obtained in the process of calculations for each of its items. Therefore, the work of compiling a balance of income and expenses is not a simple filling of its articles with the corresponding numerical data obtained as a result of calculations and summing up for each of the sections. With such work, it is impossible to achieve a balance between income and expenses and ensure the targeted and efficient use of financial resources.
In the process of forming the balance of income and expenses, the following tasks should be solved:
- identification of the enterprise's reserves and mobilization of on-farm resources, which make it possible to increase profitability, solvency, accelerate the turnover of assets and capital and solve other issues related to improving the financial condition of the enterprise;
- more efficient use of profits and other income;
- increasing the efficiency of investments and the investment attractiveness of the enterprise.
The work should begin with the compilation of the "Revenues and Receipts of Funds" section, with the determination of their total size, analysis of the composition, structure and rate of change in comparison with similar data for the corresponding period preceding the planned one. In the event of a decrease in any types of income and receipts, it is necessary to analyze the reasons for this, as well as check the calculations in order to avoid errors.
In the process of compiling the "Expenses and deductions" section, it is necessary to check, for a number of its articles, the relationship between the planned amounts of expenses and deductions with the sources of covering them with the corresponding income and receipts of funds provided for in the first section of the balance of income and expenses. The costs of products and services sold, provided for in the second section of the balance sheet, must be fully covered by the proceeds from their sale. If the proceeds from the sale of products and services are less than the costs of the products sold, then in the first section there will be no profit from the sale, and in the second section, in the amount of planned costs for the sold products, losses appear as part of these costs in the amount of excess costs over revenue.
The cost of repairing fixed assets should be equal to the amount of the repair fund shown in the first section of the balance of income and expenses. In the case of planning expenses for the repair of fixed assets in an amount less than the amount of the repair fund, an additional item is provided in the second section of the balance of income and expenses - "Free balance of the repair fund", which reflects the amount of excess of the repair fund over repair costs.
If capital investments are not provided for the planned period or their planned amount is less than the depreciation contained in the first section of the balance sheet, then the free balance of these funds cannot be used to cover other planned costs and payments. Not used for its intended purpose, this balance of funds is shown in the second section of the balance of income and expenses under the item "Balance of funds earmarked for investments".
After filling in all the items of the balance of income and expenses and summing up the results for each of the sections, the degree of balance between them is checked. To do this, you need to compare the result of the first section "Incomes and receipts" with the sum of the results of the second and third sections. In the absence of equality, it is necessary either to find additional sources of income and receipts, or to revise the expenses and deductions planned for the second and third sections of the balance sheet in the direction of their reduction.
9.2. Drawing up a planned balance sheet of an enterprise
The value of assets and liabilities in the planned period may change compared to the baseline under the influence of a number of factors. Each article of assets and liabilities should be calculated taking into account the factors affecting precisely its value. In this case, it is important for us to take into account those factors that are associated with changes in sales proceeds in general, prices for products sold, natural volume of sales, profits from sales and other activities, prices for raw materials, materials and services consumed in the course of the enterprise’s activities, terms of settlements with debtors and creditors.
These factors have a direct impact on the most dynamic elements of assets and liabilities - stocks, receivables, cash, accounts payable. Non-current assets are less affected by these factors, but may also change for some other reason.
Intangible assets, and especially long-term and short-term financial investments, are not directly affected by the dynamics of sales proceeds, prices for the Company's products and raw materials, etc. Fixed assets and construction in progress may change, for example, under the influence of changes in production volume, but this should be very significant qualitative shifts in technology, volume and range of products, etc.
Capital and reserves, long-term liabilities and short-term bank loans also change for reasons of a different nature, however, it is necessary to keep in mind a possible increase in capital and reserves due to the direction of part of the profit received in the planning period.
Considering the balance sheet planning of an enterprise, let's leave aside possible changes in its investment policy, in relations with banks, etc. Let's take into account only those factors that change most often and are directly related to the main activity.
Let's assume that in the planning period it is assumed that prices for the company's products will increase and that the natural volume of production equal to the base volume will be sold. Then the sales revenue will increase by 10%, and the profit from sales will be:
24021 x 1.1 -21599 = 4824 thousand rubles.
Such a calculation is correct if the prices for raw materials, materials and services consumed by the enterprise in the course of its activities, and the level of remuneration of the employees of the enterprise do not change. But, according to experts, prices for consumed resources will be higher than in the base period, on average by 2.7%, and labor costs for various reasons will increase by 23.6%. Deductions to off-budget funds will also grow to the same extent. The rest of the cost elements will not change, since they are not associated with either a change in sales proceeds or a change in prices.
Material costs as part of the cost of sold products are planned in the amount of 4950 thousand rubles, i.e. 18.7% of sales proceeds; labor costs and deductions to off-budget funds - 10,882 thousand rubles, i.e. 41.2% of sales proceeds; depreciation of fixed assets will remain at the base level, amounting to 2,330 thousand rubles, or 8.8% of sales proceeds. Thus, data on the dynamics of sales proceeds and its components can be summarized in the following table.
Table 9.1. – Change in sales revenue, costs of products sold and profit from sales in the planning period compared to the base
Indicators |
Base period, thousand rubles |
Planned period, thousand rubles |
Gr. 3 as a percentage of gr. 2 |
1. Sales proceeds |
|||
2. Costs of products sold - total |
|||
2.1. Material costs |
|||
2.2. Labor costs and deductions to off-budget funds |
|||
2.3. Depreciation of fixed assets |
|||
2.4. Other costs |
|||
3. Profit from sales (p. 1 - p. 2) |
1. The state of the company's stocks: is there a surplus or shortage of stocks compared to the required need, and is it supposed to eliminate the surplus or shortage in the planning period, if they occur in the base period.
2. The state of receivables: are there any overdue or bad debts in it, and is repayment of the overdue expected. In addition, does the composition of debtors or the terms of settlements with them change, leading to an acceleration or slowdown in the turnover of receivables in general.
3. The state of accounts payable: is there any overdue in its composition and is it expected to be repaid, if any. In addition, does the composition of supplier creditors and the terms of settlements with them change, leading to an acceleration or slowdown in the turnover of accounts payable to suppliers. Finally, is there any overdue accounts payable to other creditors (the budget, off-budget funds, etc.).
Depending on the listed circumstances, the planned amounts of stocks of receivables and payables may vary significantly.
In view of the foregoing, we determine the planned size of stocks If, as in our enterprise, the vast majority of stocks are raw materials, then the entire basic balance sheet value of stocks can be calculated without a large error based on the rate of change in material costs and replenishment of stocks. If significant reserves are presented finished products or goods shipped, then they must be planned by direct account based on the prospects for selling and paying for the company's products (Table 9.2).
Table 9.2 - Calculation of the planned size of the company's stocks
Indicators |
Basic period |
Planned period |
||
maximum |
||||
1. Book value of stocks |
||||
1.1. Excess inventory |
||||
2. Lack of inventory |
||||
3. Normal inventory value: |
||||
a) page 1 - page 1.1. |
||||
b) page 1 + page 2 |
||||
4. Material costs for sold products |
||||
5. Inventory turnover (page 4: page 3) |
speed |
|||
Explanations for the calculation.
1. In page 5, the normal inventory turnover is calculated, provided that the lack of inventory on the balance sheet is eliminated. Without changes in the technology and composition of products, such a turnover is maintained in the planned period.
2. Required stocks for the planned period in p. 3 gr. 4 and 5 are determined by dividing material costs by normal inventory turnover (4950: 3.55 = 1394 thousand rubles).
3. In the event that the shortage of reserves is eliminated, the balance sheet value of the reserves will be equal to the normal value (line 1, column 5); while maintaining a shortage of stocks, their balance sheet value should, at a minimum, increase in proportion to the growth of material costs for products sold: 1155 x 4950/4818 = 1187 thousand rubles. (this is due to rising prices for raw materials and materials).
If there were excess stocks on the balance sheet of the enterprise, the calculation would be similar, but the minimum result would correspond to the normal, and the maximum - to the actual state of stocks.
We now calculate the planned amount of receivables. Since here it is necessary to take into account both the actual composition and turnover, we will make two calculations.
Table 9.3 - Calculation of the planned amount of receivables, taking into account its condition
Indicators |
Base period |
Planned period |
|
maximum |
|||
1. Balance value of receivables, thousand rubles. |
|||
1.1. Overdue |
|||
1.2. Hopeless |
|||
2. Sales proceeds, thousand rubles. |
|||
3. Turnover of receivables in the base period (number of turnovers) (p. 3: p. 1): |
|||
a) actual |
|||
b) excluding overdue and bad Accounts Receivable |
|||
Explanations for the calculation.
1. The calculation is made on the basis of unchanged contractual terms with Debtors and the previous composition of debtors.
2. It is assumed that the minimum amount of receivables in the planning period is possible in the absence of overdue and bad debts (the first will be repaid, the second will be written off). Page 1 gr. 3 received: (4500 - 300 - 10) x 26423/24021 = 4510 thousand rubles; page 1 gr. 4: 4500 x 26423/24021 = 4950 thousand rubles.
Let's introduce another factor into the calculation of the planned value of receivables: a change in the composition of debtors or the terms of settlements with previous debtors changed the turnover of receivables and eliminated overdue and bad debts. Suppose the turnover will be 6.5 times in the planning period instead of 5.9 times in the base period. Comparison of the planned turnover with the base one in the absence of overdue and bad debts requires taking into account precisely 5.9 times, and not 5.3 times. Then the minimum planned value of receivables is equal to: 4510 x 5.9 / 6.5 = 4094 thousand rubles. instead of 4510 thousand rubles.
Taking into account similar factors, accounts payable to suppliers are planned (Table 9.4).
Table 9.4 - Calculation of the planned amount of accounts payable to suppliers
Indicators |
Base period |
Planned period |
|
maximum |
|||
1. The balance sheet value of accounts payable to suppliers, thousand rubles. |
|||
1.1. Overdue |
|||
2. Material costs for sold products, thousand rubles. |
|||
3. Turnover of accounts payable to suppliers (number of turnovers; p. 2: p. 1): |
|||
a) actual |
|||
b) excluding overdue |
|||
Explanation for the calculation.
Page 1 gr. 3 and 4, taking into account the same turnover and the absence of overdue accounts payable to suppliers, is calculated as follows: 281 x 4950/4818 = 289 thousand rubles.
If in the planning period the composition of suppliers or the contractual terms of settlements with them change, which leads to a change in the turnover of accounts payable, then the calculated value changes inversely with the application of the number of revolutions in the same way as we calculated receivables above.
Accounts payable for wages, social insurance and security, as a rule, depend on the established frequency of settlements, respectively, with employees of the enterprise and extra-budgetary funds. Therefore, it can be calculated for the planning period based on the amount at the end of the base period, increased in proportion to the growth of labor costs and deductions to off-budget funds as part of the costs of products sold in the planning period. The basic value of accounts payable for deductions to off-budget funds and wages in accordance with our balance sheet data and the growth rate of these costs is: (384 + 180) x 123.6 / 100 = 697.1 thousand rubles.
It is more difficult and time-consuming to determine the planned amount of accounts payable to the budget with a sufficient degree of accuracy. If the enterprise has no overdue debts to the budget, then the base amount reflects the required amount of debts corresponding to the established frequency of payments to the budget for various types of taxes. However, due to the change in sales proceeds and profit in the planning period compared to the base period and the preservation of the size of all other objects of taxation, it is necessary to calculate the increase in income tax, VAT and all Other taxes, the amounts of which depend on sales proceeds, the profit of the wage fund. This is done by direct account, based on the specific data of each enterprise. In our case, the increase in income tax, VAT, transport tax, deductions for the maintenance of housing stock and social and cultural facilities will total 236.5 thousand rubles. Then, for the Calculation, it is necessary to determine the percentage of accounts payable for these taxes to the total amount of payments due on them in the base period. At our enterprise it is equal to 11.5%. This means that the increase in accounts payable to the budget is 236.5 x 11.5/100 == 27.2 thousand rubles. Of course, this value is calculated with some tolerance. But for the preparation of the planned balance, the error can be ignored, since the debt to the budget, as a rule, is not a quantitatively decisive part of the accounts payable of the enterprise.
Thus, we calculated the planned size of assets and liabilities, which change under the influence of changes in sales proceeds, prices for purchased raw materials, materials and services, and the level of wages. These factors operate at each enterprise constantly, therefore, they must be taken into account when drawing up any planned balance.
As noted above, other reasons are possible under the influence of which assets and liabilities change, but they are of a different nature and are mainly associated with changes in the investment and financial policy enterprises. If such reasons exist, non-current assets, capital and reserves, long-term liabilities, bank loans, short-term financial investments may change.
In our calculation, we proceed from the fact that there were no such changes in the planning period compared to the base period. If they were, then the calculation of changes in the named elements of assets and liabilities is carried out by direct account and is not difficult.
Based on the calculations made, we will draw up the planned balance sheet of the enterprise. At the same time, it must be borne in mind that in the planned balance sheet, compiled on the basis of only changes in assets and liabilities, the total amounts of the value of property and sources of financing do not necessarily coincide. On the contrary, as a rule, they do not coincide, and either a surplus or a shortage of funding sources is revealed in comparison with the required amount of assets. Only after that it is possible to decide on the direction of the planned profit to replenish the sources of financing, if it turns out that this is necessary. Therefore, for now, at this stage of planning, we do not consider in more detail the size of the planned profit of the enterprise. When compiling the balance sheet, we will also take into account that capital and reserves in the base period occupy a very large share in the sources of financing. The company uses very few borrowed sources. It is hardly advisable to increase capital and reserves even more, even if such a possibility exists.
When drawing up the planned balance, we will take into account that we calculated the stocks and receivables at the minimum and maximum levels. VAT on purchased materials will increase in proportion to the increase in the cost of inventories, i.e., it will be equal to 163 x 1187/1155 = 168 thousand rubles, or 163 x 1394/1155 = 197 thousand rubles. We accept the growth of cash in proportion to the growth in sales proceeds, i.e. 84 x 1.1 \u003d 92 thousand rubles.
Table 9.5 - Estimated planned balance of the enterprise at the end date of the planning period (thousand rubles)
Maximum |
||
1. Non-current assets |
||
2. Current assets (p. 2.1.-2.6) |
||
2.1. Stocks |
||
2.2. VAT on purchased assets |
||
2.3. Accounts receivable |
||
2.4. Short-term financial investments |
||
2.5. Cash |
||
2.6. Other current assets |
||
1- Capital and reserves |
||
2. Long-term liabilities |
||
3. Short-term liabilities (p. 3.1. - 3.3) |
||
3.1 Credits and loans |
||
3.2. Accounts payable (lines 3.2.1 - 3.2.4.) |
||
3.2.1. Suppliers |
||
3.2.2. For wages, social insurance and security |
||
3.2.3. budget |
||
3.2.4. Other creditors and advances |
||
3.3. Other short-term liabilities (funds and reserves of the enterprise) |
||
Total assets |
||
Total liabilities |
||
Excess: |
||
assets over liabilities |
||
liabilities over assets |
The calculation shows that if all the parameters of the planned balance are determined correctly, then financial situation in the coming period will be favorable for the enterprise: the amount of funding sources exceeds the cost of the necessary assets, and if inventories and receivables have a minimum estimated value, then this excess increases significantly. This means that the enterprise does not need to seek additional sources of financing even in the face of an increase in sales proceeds and prices for acquired material resources.
Obviously, there is no need to direct any part of the profit to increase capital and reserves; profits can be used entirely for other purposes.
With a different balance sheet structure, a different increase or decrease in sales proceeds and certain types costs for products sold, a different structure of the costs themselves, etc. the conclusions could be completely different. It could turn out that the excess of funding sources over assets is even more significant, or, conversely, the company needs additional sources. Then it would be necessary to increase equity capital, attract credits and loans, or change the contractual terms of settlements with suppliers.
9.3. Change in financial and cash flows due to changes in sales proceeds
Consider the relationship between changes in sales proceeds, costs and profits, on the one hand, and changes in the assets and liabilities of the enterprise, on the other, according to the largest factor. Such a discussion will be somewhat sketchy, but will allow a clearer understanding of the decisive factors that influence this dependence.
We accept the following conditions.
- Accounts receivable turnover - 45 days;
- Accounts payable turnover -40 days;
- Inventory turnover - 30 days;
- Material costs - 50% of sales proceeds;
- Free profit - 6% of sales proceeds.
Under all these conditions, it is planned to increase the proceeds from sales by 100 thousand rubles. What will happen to balance sheet data?
Accounts receivable will naturally increase. If the additional annual cost of sold products is 100 thousand rubles, then the additional receivables will be:
100 x 45/360 = 12.5 thousand rubles.
Stocks will increase in proportion to the increase in material costs as part of sales proceeds, and taking into account their turnover, the increase in stocks is equal to: 50 x 30/360 = 4.2 thousand rubles.
Accounts payable, formed mainly during the acquisition of material resources, will increase by 50 x 40/360 = 5.5 thousand rubles.
Thus, the increase in assets under the influence of an increase in sales proceeds will be 12.5 + 4.2 = 16.7 thousand rubles; the increase in sources of financing in the form of accounts payable - only 5.5 thousand rubles. The enterprise needs additional sources of financing in the amount of 16.7 - 5.5 = 11.2 thousand rubles. Even if the free profit of the enterprise is used to increase its own sources, the need for additional borrowed funds will be equal to 11.2 - 6 = 5.2 thousand rubles.
Under the same initial conditions, sales revenue does not increase, but decreases by 100 thousand rubles. in the planning period compared to the base period. Then accounts receivable will respectively decrease by 12.5 thousand rubles, inventories - by 4.2 thousand rubles, and accounts payable - by only 5.5 thousand rubles. Available sources of financing in the amount of 11.2 thousand rubles. turn out to be redundant in comparison with the need for assets, and the profit in full can be directed to other purposes.
The given example does not mean that in all cases the increase in the volume of sales creates the problem of additional sources of financing, and the decrease eliminates this problem. Consider other options in which the situation is different (Tables 9.6 and 9.7).
Table 9.6 - Change in the assets and liabilities of the enterprise when changing the terms of settlements with buyers and suppliers and the growth of sales proceeds
Indicators |
Options |
||
6. Increase in accounts receivable (line 1 x line 2: 360), thousand rubles |
|||
7. Increase in stocks (line 1 x line 5: 100) x line 3: 360, thousand rubles. |
|||
8. Increase in accounts payable (line 1 x line 5: 100) x line 4: 360, thousand rubles. |
|||
9. Lack of funding sources (line 6 + line 7 - line 8), thousand rubles. |
|||
10. Excess funding sources (p. 8 - p. 6 - p. 7) |
|||
The calculation shows that with the same increase in sales volume and the same annual inventory requirement, the shortage or surplus of funding sources is determined only by the ratio of the turnover of receivables and payables and stocks. We repeat the conclusion that has already been made earlier: for the financial condition of the enterprise in the case of a prospect of increasing its sales volume, it is favorable when the turnover of receivables is faster than the turnover of accounts payable. The lower the share of material costs in the composition of sales proceeds, the greater the gap in the number of days of turnover of receivables and payables is required to ensure that funding sources cover assets associated with an increase in sales volume. To illustrate this conclusion, in the next calculation, we will take options II and III of the previous table as initial data, where funding sources exceed assets. Let's change only one condition: the share of material costs in the sales proceeds is 40% instead of 55%.
Table 9.7 - Change in the assets and liabilities of the enterprise with a change in the share of material costs in sales proceeds
Indicators |
Options |
|
1. Increase in sales proceeds, thousand rubles |
||
2. Accounts receivable turnover, days |
||
3. Inventory turnover, days |
||
4. Accounts payable turnover, days |
||
5. Material costs as part of sales proceeds, % |
||
(^Increase in accounts receivable, thousand rubles |
||
7. Increase in accounts payable, thousand rubles. |
||
8 - Increase in reserves, thousand rubles. |
||
^Lack of funding sources |
||
Y. Surplus funding sources |
||
Comparison of the last rows of the two previous tables shows that the decrease in the share of material costs, while maintaining all other calculation conditions, led to a deterioration in the ratio of assets and sources of financing.
It is clear that in each individual case, the growth in sales proceeds will lead either to a shortage or to an excess of sources of financing, depending on other indicators of the enterprise. The same conclusion can be drawn for the case of a decrease in sales proceeds.
Therefore, when forecasting an increase or decrease in sales proceeds, it is necessary to consider whether the available sources are sufficient to cover the growing assets (or whether the decrease in sources will be greater than the decrease in assets). If this is the case, then it is necessary to provide for specific additional sources of financing, or borrowed.
When compiling the planned balance, it is advisable to calculate the planned level of solvency of the enterprise. In our enterprise, as we have seen, the total coverage ratio and the current ratio are quite high in the base period. According to the planned balance, the current liquidity ratio is (minimum) 5957: 2489 = 2.393. This level of solvency does not cause concern, and from this point of view, the balance can not be corrected, especially since the company's need for material reserves is small.
The calculation of the increase in assets and liabilities or their decrease contains information on the increase or decrease in solvency ratios. For example, if current assets increase by 16.7 thousand rubles, and short-term debts by 5.5 thousand rubles, this is a factor in the growth of solvency. And vice versa, with a faster increase in short-term debt compared to the growth of current assets, it is necessary to check how much the overall coverage ratio or current liquidity ratio decreases.
In general, it should be borne in mind that with any improvement in the terms of settlements with creditors compared to the terms of settlements with buyers, i.e., with an acceleration in the turnover of receivables or a slowdown in the turnover of accounts payable, the level of solvency of the enterprise decreases. If before that it was on the verge of being critical, it is dangerous for the enterprise; in other cases, a faster turnover of receivables compared to accounts payable is favorable from the point of view of its financial condition.
print version
The object of regulation is the existing financial resources of the enterprise, debt obligations, liquid assets. The task of financial management is to reduce losses and maximize business profitability.
Financial management focuses on strategic goals companies quickly adapt to changing situations. The cash flow management structure is closely integrated with the departments of the company in order to control the amount of profit (loss) for each management decision.
Tasks
From a management point of view, financial management is seen as part of general guidance business and a separate department in the company that performs a narrow list of functions.
- Financial management as a management system includes the creation of a financial strategy, the construction of an accounting policy, the introduction of accounting software products, constant monitoring of the company's performance. For example, the tasks of financial managers include building a budget, a system of material motivation for staff.
- Financial management as a separate department manages financial assets and risks, monitors cash flows, selects investment projects to participate, monitors information flows in the company. For example, the assessment of acquired fixed assets is carried out after studying the accompanying documentation.
The financial manager determines the investment policy of the company (a list of projects in which assets are invested), manages tangible assets (executes transactions for the sale of fixed assets), calculates and pays dividends to shareholders. The constant task of financial management is the classification and accounting of the company's income and expenses, the preparation analytical reports for guidance.
The effectiveness of financial management depends on the quality of external sources of information that are used to collect and analyze indicators. For example, public data from banks and insurance companies, information from competitors, regulatory requirements from supervisory authorities, and the financial statements of the enterprise should be checked for completeness and accuracy.
Principles
Regardless of the specifics of the company, current and strategic goals of its development, financial management is a systematic activity aimed at solving specific problems by distributing cash flows. The activity of a financial manager is aimed at solving strategic problems, achieving financial well-being in the long term.
- A compromise of risk and return. Financial management considers opportunity costs, overall efficiency market, projected returns and associated risks before taking management decisions. For example, investing in startups brings high returns and is accompanied by the risk of losing investments.
- Asymmetry and time value of information. Confidential information about market characteristics obtained from counterparties or supervisory authorities can be beneficial in the short term. For example, "tax holidays" for R&D companies can be valid for two years.
Financial management assumes an unlimited period of operation of the company, strives to meet the interests of business owners and employees, and fairly evaluate the available sources of financing.
Loading...