The Ministry of Education and Science of the Russian Federation

Federal State Budgetary Institution of Higher Education

Plekhanov Russian University of Economics

Faculty of Management

COURSE WORK

on discipline «Financial Management»

Topic: « Methods of short-term financing of enterprise »

Prepared by students:
D.I. Lebedeva
E.A. Tsareva
group 25ДМ-09/16 (1290),
full-time form of education
of Faculty of Management

Scientific supervisor:
Naief Alabed Alkader

Moscow – 2018
 Contents

Introduction............................................................................................................2

Chapter 1. Theoretical concepts of short-term financing of organization.............4

1.1 Goals and objectives of debt financing sources involvement..........................4

1.2 Short-term debt capital and forms of its involvement.....................................5

1.3 Estimation of borrowed capital cost and its features.......................................8

Chapter 2. Financial and economic characteristics of the enterprise on the

example of LLC “Primorskij Rice”.....................................................................14

2.1 Analysis of the main economic and financial indicators of “Primorskij Rice”
.............................................................................................................................14

2.2. Analysis of the dynamics and structure of the asset and liabilities of the
balance sheet........................................................................................................24

2.3. Analysis and characteristics of short-term liabilities of the enterprise.........31

Chapter 3. Improvement of short-term financing policy for LLC “Primorskij

Rice”....................................................................................................................35

3.1 Advantages of bank loans for the LLC “Primorskij Rice”............................35

3.2 Operational leasing as one of the alternative forms of short-term financing.36

Conclusion...........................................................................................................40

References............................................................................................................41

1
Introduction

Financial resources of enterprises are the basis of the financial system of

the whole country.
They occupy a separating position in this system, as they cover the most
important part of all monetary relations in the country - financial relations in the
sphere of public monetary reproduction of the country, to be more precise.
Financial policy is formed by the state.
State also determines the sequence of formation, distribution and use of
assets of centralized funds of financial resources, which serve as one of the sources
of financing of enterprises.
With the help of financial resources, enterprises identify huge reserves in
improving the financing and organization of their work, optimizing the capital
structure, which ensure the growth of production and profit sales, balance of
material and financial resources.
The basic principle of Finance in enterprise is equalization of the
opportunities for profit with overcoming the risk of cash advances in various areas
of business.
In financing with the help of borrowed funds, much attention is paid to the
stimulation of commercial initiative, the growth of labour productivity.
First of all, borrowings are needed to Finance the growing enterprises,
when the growth rate of own sources lag behind the growth rate of the enterprise,
to modernize production, develop new products, expand its market share, acquire
other business, etc.
Inflation and lack of working capital may force most enterprises to borrow
in order to Finance the working capital.
The advantage of financing from debt sources is the unwillingness of
owners to increase the number of shareholders.
Also, a relatively lower cost of credit compared to the cost of equity is
beneficial.

2
 This phenomenon is expressed in the effect of financial leverage.
Debt capital is a set of borrowed funds that bring profit to the enterprise.
The purpose of management of financial and cash flows is the provision of
the circulation of assets of the enterprise, which is a condition for its normal
functioning.
It determines the relevance and importance of the topic of this work for
modern enterprises of various fields and activities.
In order to accomplish the proper analysis the LLC “Primorskij Rice” was
chosen.
The object of the course work - methods of the short-term financing of
enterprises, while the subject is the LLC “Primorskij Rice”.
To achieve this goal, the following tasks are needed to be accomplished:
- consider the theoretical aspects of debt financing sources;
- give financial and economic characteristics of the enterprise (LLC
“Primorskij Rice”);
- reflect the ways of improvement of existing short-term funding policies
of LLC “Primorskij Rice”;
- develop the recommendations to improve short-term funding policies.
As sources of information the reference and regulatory literature among
with annual reports were analysed.

3
 Chapter 1. Theoretical concepts of short-term financing of organization

1.1 Goals and objectives of debt financing sources involvement

Effective financial activity of the enterprise is impossible without constant

borrowing.
The use of borrowed capital can significantly expand the volume of
economic activity of the enterprise, to ensure more efficient use of own funds, to
accelerate the formation of various target financial funds, and ultimately - to
increase the market value of the enterprise.
Although the basis of any business is equity, in a number of enterprises the
amount of borrowed funds used is much higher than the amount of equity. In this
regard attraction and use of borrowed funds is the most important aspect of the
financial activity of the enterprise, aimed to achieving high final results of
economic management. The debt capital used by the enterprise characterizes the
aggregate amount of its financial liabilities (total debt). These financial obligations
in modern economic practice are differentiated as long-term financial obligations
and short-term financial liabilities.
Long-term financial obligations.
These include all forms of debt capital operating in the enterprise with a
period of its use of more than one year. The main forms of these obligations are
long-term loans from banks and long-term borrowings (tax debt; debt on issued
bonds; debt on financial assistance provided on a repayable basis, etc.), the
maturity of which has not yet come or not repaid in the prescribed period.
Short-term financial liabilities.
These include all forms of borrowed capital with a term of one year or less.
The main forms of these obligations are short-term loans from banks and short-
term borrowings (provided for repayment in the short period and not repaid in due
time), various forms of accounts payable by the enterprise (for goods, activities
and services; for issued bills; for advances received; for calculations with the

4
budget and extra-budgetary funds; for labour payments; with subsidiaries; with
other creditors) and other short-term financial obligations.
The borrowing policy is part of the overall financial strategy.
Its aim is to ensure the most efficient forms and conditions of borrowing
from various sources in accordance with the needs of the enterprise.
Borrowings are attracted by the company on a strictly targeted basis, which
is one of the conditions for their subsequent effective use.
The main objectives of enterprises' borrowing are:
- replenishment of the required volume of the constant part of current
assets (currently, most enterprises engaged in production activities are not able
to finance the part of the working capital assets require; a significant part of this
funding is provided by borrowed funds);
- ensuring the formation of a variable part of current assets (whatever
asset financing model the enterprise uses, in all cases the variable part of current
assets is partially or fully will be financed by the borrowed funds);
- formation of the missing volume of investment resources (the purpose
of borrowing in this case is the need to accelerate the implementation of certain
real projects of the enterprise - new construction, reconstruction, modernization,
etc.);
- provision of social and household needs of its employees (in these
cases, borrowed funds are used to issue loans to their employees for individual
housing construction, arrangement of garden plots and other similar purposes);
- other temporary needs (the principle of targeted borrowing is also
ensured in this case, although such borrowing is usually carried out for short
periods and in small amounts).

1.2 Short-term debt capital and forms of its involvement

Short-term borrowings are used by companies of all types and sizes. Short-
term debt is debt that is repayable during the year. These borrowings are used in
order to finance the operating costs.

5
 The value of the short-term debt account is very important when
determining a company's performance. If the account is larger than the
company's cash and cash equivalents, this suggests that the company may be in
poor financial health and does not have enough cash to pay off its short-term debts.
Sources of short-term funding are: trade loans, loans from financial
institutions, bills of exchange and promissory notes.
- Trade loans

This is the most common source of short-term financing. It is a loan that a

supplier of products or materials provides to a buyer. Registration of this
transaction can be regulated by contract or verbal agreement. There are two forms
of trade loan - open loan and promissory note. Open loan (open account) allows
buyer to purchase goods with deferred payment. This is an informal agreement
under which buyer receives the products before purchasing them. A promissory
note is a buyer's debt obligation to pay a certain amount of money to the supplier
by a specific date. [12]
- Loans from financial institutions

Company may refer to a commercial Bank or other financial institution for

a short-term loan. There are two types of loans – secured and unsecured. A secured
loan is a loan that's guaranteed with collateral of a certain value, which will be
given to a lender in case of borrower's bankruptcy. For example, the enterprises
own assets may be considered as a collateral.
A loan to a debtor's account implies that the debt owed to the enterprise by
its clients on open accounts is used as collateral. Accounts receivable may be sold
to a third-party financial company. This procedure is called factoring. When firm's
security deposit is presented in the form of its inventories, the bank accepts a
depositary receipt in which it is stated that if this firm does not pay the debt, its
inventories will be transferred to creditors. Short-term loans can also be issued
with any movable ("liquid") property as a collateral, such as transport vehicles.
Unsecured loan is a loan that is issued and supported only by the borrower's
creditworthiness, rather than by any type of collateral. 

6
 In this case, lender relies on the profitability of the enterprise or its
reputation. As a guarantee, creditor requires borrower to keep a certain amount of
money in the bank account (compensation balance). Another type of unsecured
loan is the "continuing facility". It represents the maximum amount that bank
agrees to give to the company within a certain period of time.
Operating leasing should also be considered as an appropriate method of a
short-term financing. An operating lease is a lease whose term is short compared to
the useful life of the asset or piece of equipment (an airliner, a ship, etc.)
being leased. An operating lease is commonly used to acquire equipment on a
relatively short-term basis. [8]
The object of leasing can be any movable and immovable property that
belongs to fixed assets and is the subject of sale and purchase. The objects of the
leasing transaction are not destroyed in the production cycle. The objects of leasing
may include software and high-cost tools that ensure the functioning of leased
assets.
The subjects of leasing are the lessor, the lessee (the user), the producer.
The lessor is a legal entity that transfers the leasing object under the leasing
agreement. He is the owner of the leasing object.
The lessee is a business entity that receives a leasing object for temporary
possession and use under a leasing agreement.
Enterprises, organizations and other economic entities that produce or sell
commodity and material assets, so-called suppliers of leasing objects, are the
producers.
Lessors, lessees, producers (suppliers) are direct subjects of a leasing
transaction. Indirect participants in the transaction may be banks that lend to the
lessor and act as guarantors of transactions, insurance companies, brokerage and
other intermediary firms. [8]
- Bills of exchange and promissory notes

A bill of exchange is a written order used primarily in international trade

that binds one party to pay a fixed sum of money to another party on demand or at

7
a predetermined date, while the promissory note is a signed document containing a
written promise to pay a stated sum to a specified person or the bearer at a
specified date or on demand.
Thereby, each company that issues the promissory note undertakes to
return the amount of money stated in that promissory note, in a certain time.
Investor buys a promissory note at a price below its nominal value (this is his
«benefit»), and at the end of the timeframe investor receives the full value of the
bill.

1.3 Estimation of borrowed capital cost and its features

The borrowed capital is estimated by the following elements: cost of

financial loan (Bank and leasing), cost of capital raised through the issuance of
bonds, cost of commodity (commercial) loan and cost of current liabilities.
The main elements of borrowed capital are the Bank's loans and bonds
issued by the organization. In some cases, when a large amount of money is
needed for investment (e.g. for purchasing of new equipment), financial leasing
and commercial (commodity) loan (forfeiting) – loans from other organizations -
are used.
The cost of borrowed capital depends on many factors: the type of interest
rates used (fixed, floating); developed scheme of interest accrual and repayment of
long-term debt; the necessity of formation of the Fund for repayment of debt etc.
- Cost of Bank loan;

Despite the variety of types, forms and conditions of the Bank loan, its cost
is determined on the basis of the interest rate for the loan, which forms the major
costs of the organization for its maintenance. [12]
The cost of long-term loans of the Bank should be determined with regard
to income tax, as according to the normative documents, interest for the use of
Bank loans are included in the cost price of production, which reduces the amount
of taxable profit and the amount of income tax paid by the organization. As a
result, the net profit of organization increases. Therefore, the value of unit of this

8
source of funds is less than the interest paid to the Bank.
The impact of profit taxation on the cost of capital can be seen here: if the
cost of maintenance of any source of capital is written off to the cost price, the
price of capital of such source is calculated with tax adjustment in order to reflect
the real costs of organization.
Since interest is written off to the cost price, accounting to a post-tax basis
reduces the amount of annual expenditures on interest payment on the amount
owed from this value of the tax; obtained indicator (in a percentage of the principal
amount of capital) is considered as the cost of debt of this source:
kd = I * (1-T) , [14].
Id - interest a company pays on its borrowing;
kd – cost of debt capital;
T - income tax rate.
As a result, the real cost of the Bank's loan (cost of debt capital) will differ
from the nominal (interest for the loan) downward, because interest for the use of
the Bank's loans are included in the cost of production, thereby reducing taxable
income.
Besides, cost of a Bank's loan should be increased by the amount of other
costs of the organization, defined by the terms of the loan agreement (for example,
credit insurance at the expense of the borrower).
Considering these provisions, the cost of a Bank loan is estimated by the
formula:
kd
kd = (I * (1-T))/(1 - D ) , [14].

kd
Where D is total debt, and the D is the level of expenses for raising a

loan to its amount.

If organization does not incur additional costs to acquire a loan or if these
costs are insignificant in relation to the amount of funds raised, given formula is
used.
- cost of other organizations loans;

9
 Loans received by the organization from other business entities are
significantly different from the Bank loan (except for banks, long-term financing
of organizations can be carried out by other financial institutions: insurance
companies, investment funds, leasing companies, etc.).
According to the tax legislation, the interest paid for the use of such loans
cannot be attributed to the cost of production, since the lender does not have a
license to carry out certain credit operations.
Therefore, the cost of capital of this source is equal to the interest rate paid
(this is a significant difference between debt service and loans received from other
organizations):
Ke = Ie , [14].
Ke - cost of equity, received as a financial loan from other organizations.
Ie - interest a company pays on its borrowings.
- financial lease cost;

Financial leasing is one of the modern forms of attracting the financial

credit.
Its value is determined on the basis of rate of lease payments (leasing rate).
Meanwhile, it should be taken into account that this rate includes two components:
gradual repayment of the principal (it is an annual depreciation rate of the asset
attracted on the terms of financial leasing, according to which, after its payment,
the asset is transferred to the property of the lessee) and the cost of direct servicing
of the leasing debt.
With regard to these features, the cost of financial leasing is estimated by
the formula:
1− (1+i )−n
A = Rm (p)
R= () 1p ) , [8].
p ( ( 1+ i −1)

where A - the value of the leased asset, less the residual value of the leased
asset; R-annual payment; i-annual interest rate of the lease; p-lease duration in
years; p – the number of payments per year.
The management of the financial lease value is based on two criteria: 1) the

10
cost of financial leasing should not exceed the cost of a Bank loan provided for the
same period (otherwise, it is more profitable for an organization to obtain a long-
term Bank loan to purchase an asset in the property); 2) in the process of using
financial leasing, such proposals should be identified that minimize its cost.
- bond issue value;

Organization can issue long-term loans in the form of bonds, which are
placed through banks and other financial institutions.
For these obligations, organization (as an object of development)
undertakes to repay the debt after a certain period of time with a periodic payment
of a certain interest.
At the same time, financial rights of bondholders are observed on the first
place, i.e. they have advantages over shareholders.
Yield can be calculated differently depending on the type of bond.
From the position of calculation methodology for coupon bonds without
early redemption the use of the following formula is the best:

, [14].
where Pdp - net proceeds from the issuance of the bonds (or the whole
loan); C – payment of interest at an annual coupon, T is the tax rate on income, r -
the yield on a bond, expressed as a decimal; n – the term of the loan (number of
years); M – nominal value of the bonds (or the amount of the loan).
For a newly planned bond issue, the impact of the possible difference
between the selling price of the bonds and their nominal value should be taken into
account when calculating the value of the source; in particular, the nominal value
may be higher due to the costs of issuing the bonds and selling them at a discount.
The formula for determining the value of the "Bond loan" will be:

, [4].

11
 where kcr is the coupon rate for the bond (unit fraction);
M-nominal value of the bond (or loan amount);
Npv-net proceeds from the placement of one bond (or the entire loan);
n-loan term (number of years).
The cost of debt capital raised in the form of bonds can be obtained from
the following formula:

, [14].
where Cb is the cost of borrowed capital raised in the form of bonds;
Cn is the nominal price of bonds; Pb – interest on the bonds;
Cr - realizable value of the bond; n – loan term (number of years); Ti –
income tax rate (in unit fractions).
- commercial loan costs.

A commercial loan is a debt-based funding arrangement between a

business and a financial institution, typically used to fund major
capital expenditures and or cover operational costs that the company may
otherwise be unable to afford.
It is estimated in the context of two forms of its provision: on the loan in
the form of short-term deferred payment; on the loan in the form of long-term
deferred payment with the registration of the bill.
- Cost of the loan in the form of short-term deferred payment;

Externally, this form of credit looks like a free financial service provided
by the supplier. However, in reality, the cost of such loan is estimated by the size
of the discount on the price of products in the implementation of cash payment for
it.
The management basis of this cost is its obligatory assessment in the
annual rate for each given commodity loan and its comparison with the cost of
attracting a similar Bank loan. It may be more profitable to take a Bank loan to pay

12
for products immediately and receive an appropriate price discount than to use this
form of commodity loan.
- The cost of a commodity loan in the form of a long-term deferred
payment with the issuance of a promissory note.

It is formed on the same conditions as the cost of a Bank loan; but the loss
of the price discount for the delivered products is taken into account.
Managing the cost of this form of commodity credit boils down to finding
options for supplying similar products that minimize the size of this cost, same as
Bank loan cost management does.
The cost of debt capital is associated with the interest paid, so it's important
to be able to choose the best opportunity from several options to attract capital.

13
 Chapter 2. Financial and economic characteristics of the enterprise on the
example of LLC “Primorskij Rice”

2.1 Analysis of the main economic and financial indicators of “Primorskij

Rice”

The “Primorskij Rice” enterprise is registered as LLC.

It’s located in Primorskij krai, Russia.
The enterprise deals with the production of plant growing and animal
breeding products.
In order to characterize “Primorskij Rice” we need to present its size of
production.
Table 2.1. Production size. [13]

Indicators 2015 2016 2017 2017 in %

relation to
2015

Gross output 60407 47814 27992 46,3

in
comparable
prices, th rub

The amount 230 209 152 66,1

of workers
(total)

The amount 217 199 145 66,8

of people
working in
production

14
 Commercial
58563 35169 48283 82,4
output

Average cost 52326 57285 63077 120,5

of key
assets, th rub

Working 46326 70818 47175 101,8

assets, th rub

Land area, 12047 7371 5710 47,4

ha
(total)

Land area 11110 6810 4760 42,8

(arable)

Energy 17970 18175 16744 93,2

resources,
horsepower

Livestock, 571 597 521 90,2

heads

Size of production has decreased in 2017.

Almost all the indicators have reduced: the amount of workers on 33,9%,
commercial output – 59,9%, land area -52,6, energy resources and livestock –
6,8% and 9,5% relatively.
There was 20,5% increase of costs of key assets and 1,8% increase of cost
of working assets in the dynamics of the production.

15
 We also can claim that the enterprise is not of a small size because the
amount of workers is more than 60 and includes 230 people in 2015, 209 in 2016
and 152 in 2017.
We also need to define the specialization of the enterprise.
For this person we need to look at the commercial products content and
structure.
Table 2.2. Commercial products content and structure. [13]

Average
2015 2016 2017 amount for 3
years
Types of the
products % % % %
Th relate Th relate Th relate Th relate
rub d to rub d to rub d to rub d to
total total total total

272 443 857 134

1. Cereals 46,6 12,6 17,8 28,4
80 7 7 31

236 187 269 231

2. Soybean 40,3 53,4 55,7 48,8
23 67 14 01

3. Other from 1
652 1,1 3,0 798 1,7 837 1,8
plant growing 062

4. Total of 515 242 362 373

88,0 69,0 75,2 78,9
plant growing 55 66 89 70

396 675 942 671

5. Milk 6,8 19,2 19,5 14,2
3 3 1 2

16
 6. Cattle meat 58 0,1 458 1,3 718 1,5 411 0,9

225 234 125 195

7. Pork meat 3,9 6,7 2,6 4,1
3 7 5 2

8. Livestock
products of
own 1
734 1,3 3,8 600 1,2 893 2,0
production 345
(realized and
recycled)

9. Total of
700 109 119 996
animal 12,0 31,0 24,8 21,1
8 03 94 8
breeding

585 351 482 473

10. Total 100,0 100,0 100,0 100,0
63 69 83 38

The total cost of commercial goods production has been decreasing during
the period from 2015 to 2017 (on 10280 rub) because of the plant growing
products reduction. Cereals and soybean have the biggest parts of the production.
On average, cereals are 28,4% of production and soybean – 48,8%.
The production of cereals has decreased on 18703 th rub, but production of
soybean has increased on 3591 th rub.
We can observe that there is an increase of animal breeding products in the
enterprise.
The cost became 4986 th rub more expensive.
On average, animal breeding products are 21,1% of the whole production.
“Primorskij Rice” is a bipartite enterprise.

17
 It is specialized on the cereals and soybean production because their
specific weight is the biggest.
Land is the main agricultural production asset.
The results of this production depend on the land’s content and structure.
The analysis of “Primorskij Rice” land is shown in the table.
Table 2.3. . Analysis of the enterprise’s land. [13]

Type of land 2015 2016 2017 2017 in %

to 2015

H % H % H %
a a a

Total land area 12 100, 73 100, 5 100, 47,4

04 0 71 0 7 0
7 1
0

Including: agricultural 12 100, 73 100, 5 100, 47,4

land 04 0 71 0 7 0
7 1
0

From it:

- arable land 11 92,0 68 92,4 4 83,4 42,8

11 10 7
0 6
0

- haymaking land 93 8,0 56 7,6 9 16,6 101,4

7 1 5

18
 0

- pastures - - - - - - -

Non-agricultural land - - - - - - -

The analysis has shown that the biggest part of the land is taken by arable
one.
In 2015 it is 92%, in 2016 – 92,4%, in 2017 – 83,4%.
There was a reduction of agricultural land in the period of 2 years (it was
reduced by 6337 ha or 52,6%).
It happened because of the arable land’s decrease by 6350 ha or 57.2%.
Although haymaking lands were increased by 13 ha or 1,4%, it did not
influence on the agricultural land’s square significantly.
Means of production, which include means and objects of labor, are
necessary for the process of the production.
Means of production are also production funds, they are divided into fixed
and variable assets.
Fixed assets are the most important part of the enterprise’s assets.
FA are also the means of labor which are used in the production process
repeatedly but keeping its natural form, and the costs of FA are transferred to the
final products as they wear out.
Fixed assets of the enterprise are presented in the tables 2.4 and 2.5.
Table 2.4. Analysis of Fixed Assets. [13]

Name 2015 2016 2017 2017

in %
Th.Ru % Th.Ru % Th.Ru %
to
b b b
2015

19
 Buildings 1017 1,8 1017 1,8 1017 1,5 100,0

Construstions - - - - - - -

Machinery 42515 75,1 43988 75,9 53217 78,1 125,2

and
equipment

Transport 7964 14,1 7964 13,7 8252 12,1 103,6

means

Production 75 0,1 75 0,1 114 0,2 152,0

and
household
equipment

Working 56 0,1 56 0,1 56 0,1 100,0

livestock

Productive 4949 8,8 4893 8,4 5258 7,7 106,2

livestock

Perennial - - - - - - -
plantations

Other - - - - 246 0,4 -

Total 56576 100,0 57993 100,0 68160 100,0 120,5

The total cost of the FA in 2015 was 56576 th rub, in 2016 – 57993 th rub,
in 2017 – 68160 th rub.
It has increased by 11584 th rub or 20,5% due to all its components.

20
 The largest share is taken by machinery and equipment.
Their share in 2015 was 75.1%, in 2016 - 75.9%, in 2017 - 78.1%.
Also, a great share belongs to vehicles and productive livestock.
In the dynamics from 2015 to 2017, these indicators have changed: the cost
of machinery and equipment increased by 10702 thousand rub or by 25.2%; the
cost of vehicles increased by 288 thousand rub or by 3.6%; the cost of productive
livestock increased by 309 thousand rub or by 6.2%.
Table 2.5. The indicators of usage of FA. [13]

Indicators 2015 201 2017 2017 in % to 2015

6

Fixed Assets, th rub 52326 572 63077 120,5

85

Agricultural land area, ha 12047 737 5710 47,4

1

Gross output, th rub 60407 478 27992 46,3

14

Average amount of 230 209 152 66,1

workers

FA reserves:

Capital-area ratio, th 434,3 777, 1104,7 254,4

rub/100ha 2

Capital-labor ratio, th 241,1 287, 435,0 180,4

rub/100 emp. 9

Effectiveness of usage of FA indicators:

21
 Returns on assets, rub 1,2 0,9 0,4 33,3

Capital-output ratio, rub. 0,9 1,2 2,3 255,6

Cost-effectiveness, % 21,9 2,1 -16,0 -

Analysis of the data in the table showed that the capital-area ratio increased
by 670.4 thousand rub or 2.5 times.
This was due to an increase in the average annual cost of FA by 10751
thousand rub or by 20.5%.
The increase in the capital-labor ratio by 80.4% indicates that the amount
of fixed assets per employee has increased.
It can also be concluded that the efficiency of production has decreased.
This is evidenced by a decrease in the index of returns on assets by 0.8 rub
or by 66.7%.
There is also an increase in capital-output by 1.4 rub or 2.5 times.
This suggests that there was an increase in FA used to receive 1 thousand
rub from products.
In 2016, there was a decrease in the cost-effectiveness by 19.8%, which
shows a decrease in profit, and consequently, in production efficiency.
In 2017, the fund's profitability is negative, which means that the enterprise
was operating at a loss.
The main factor of production is the labor resources or the personnel of the
enterprise.
Labor resources are part of the country's population, which has a
combination of physical capabilities, knowledge and practical experience for
working in the national economy.
Labor resources are an important factor, the rational use of which ensures
an increase in the level of production of agricultural products and its economic
efficiency. The use of labor resources is shown in the table.

22
 Table 2.6. Labor resources and its usage. [13]

Indicators 2015 2016 2017 2017 in % to 2015

Total amount of workers:

- planned 242 219 160 66,1

- in fact 230 209 152 66,1

Security, % 95,1 95,4 95,0 -

Actual working days of 1 256,5 229,6 230,3 89,8

worker, th ppl – days

Labor time utilization, % 102,6 91,8 92,2 -

1 worker burden:

- agricultural land, ha 52,4 35,3 37,6 71,8

- livestock, heads 2,5 2,9 3,4 136,0

Amount of operators per 1 0,8 0,6 0,3 37,5

tractor, ppl

The analysis of labor resources has shown that the enterprise is

insufficiently provided with workers, the security index is less than 100% and is: in
2015 - 95.1%, in 2016 - 95.4%, in 2017 - 95%.
In 2017, compared to 2015, one employee lost 10.1% of working days
spent.
This affected the indicator of the labor time utilization.
It decreased in 2017 by 10.4% compared to 2015.

23
 In 2017, the burden per 1 employee of the main production decreased by
28.2%. This was due to the reduction of agricultural land to 6337 hectares or
52.6%.
Also, 1 worker became responsible for more heads of livestock due to a
reduction in the number of employees for 78 people.
Table 2.7. Labor productivity indicators. [13]

Indicators 2015 2016 2017 2017 in % to

2015

Gross output produced, rub.:

- for 1 worker 278,3 240,3 193,0 69,3

- for 1 man – 116,6 117,8 90,0 77,2

hour

Including:

- in plant 233,4 190,3 130,4 55,9

growing

- in stocklive 44,9 50,0 62,6 139,4

Consumed on the production of 1 cwt, man – hour.:

- cereals 0,4 0,2 0,3 64,7

- soybean 0,6 0,5 0,5 76,9

- milk 6,4 5,2 5,4 84,3

- liveweight 46,1 48,8 45,1 97,9

24
 gain

Analysis of the data in the table showed that the production of gross output
decreased in 2017 by one worker by 85.3 rubles or by 30.7%; for one man-hour to
26.6 rubles or 22.8%, including the reduction in production of plant growing by
103 rubles or 44.1%, and increase in livestock production by 17.7 rubles or by
39.4%.
In 2017, in comparison with 2015, there is a decrease in man-hours needed:
for the production of 1 centner of cereals by 35.3 per cent, 1 centner of soybean -
23.1 percent, 1 centner of milk - 15.7 percent, and 1 cwt of liveweight gain by 2.1
percent.
The results of financial and economic activities and the economic
efficiency of production and sales are shown in the table.
Table 2.8. Financial results and assessment. [13]

25
Indicators 2015 2016 2017 2017 in % to
2015

Revenue from the 59542 35169 60356 101,4

products realization– total,
th rub

Including:

Plant growing 51555 24266 36289 70,4

Livestock 7008 10903 11994 171,1

Total cost of realized 47939 34319 64771 135,1

products – total, th rub

Including:

Plant growing 39399 23693 41308 104,8

Livestock 7232 10626 11026 152,5

Profit (loss) from the 11603 850 -4415 -38,1

realized products – total,
th rub

Including:

Plant growing 12156 573 -5019 -41,3

livestock -224 277 968 В 4,3 раза

Pre-tax profit (loss), th rub 11468 1183 -10091 -87,9

Product profitability level, 19,5 2,4 -7,3 -

%

Including: 26
 Evaluation of the financial activity of the enterprise showed that the
proceeds from sales in 2017 compared to 2015 increased by 814 thousand rubles or
by 1.4%.
The increase was due to an increase in revenue from livestock products by
4,986 thousand rubles, or 71.1%.
Also there was a decrease in revenues from plant growing production by
15266 thousand rubles or by 29.6%.
In the dynamics there is an increase in the cost of production by 16832
thousand rubles or by 35.1% due to the growth of the cost of production of plant
growing by 1909 thousand rubles or 4.8% and livestock products by 3794 or
52.5%.
The growth rate of prime cost exceeds the growth rate of revenue from
sales.
This suggests that the increase in revenue occurred only due to an increase
in production costs.
In 2015, the enterprise received a profit from the sale of products 11,603
thousand rubles, including 12,156 thousand rubles from the sale of plant growing
production and a loss from the sale of livestock products of 224 thousand rubles.
Profit before tax amounted to 11,468 thousand rubles.
In 2017, the enterprise received a loss from the sale of products amounting
to 4,415 thousand rubles, including losses from the sale of plant growing
production at 5,019 and profit from the sale of livestock products to the amount of
968 thousand rubles. The profit before tax in 2017 was -10091 (loss).
The level of profitability of the sold products decreased by 37.4% was -
13.8% in 2017.
The level of profitability of the enterprise also decreased and was -6.8%.
From this it follows that the enterprise is not profitable.

2.2. Analysis of the dynamics and structure of the asset and liabilities of the
balance sheet

27
 The balance sheet contains information on the placement of capital
available to the enterprise and about investing it in specific property and tangible
assets, about the expenses of the enterprise for the production and sale of products,
and the balances of free cash.
Each type of allocated capital corresponds to a separate balance sheet item.
The main condition of the grouping of balance sheet assets is the degree of
their liquidity (the speed of conversion into cash).
On this basis, all assets of the balance are divided into long-term or fixed
capital (section I) and current assets (section II).
The means of the enterprise can be used in its internal turnover and beyond
its limits (receivables, purchase of securities, shares, bonds of other enterprises).
Working capital can be in the sphere of production (stocks, work in
progress, future expenses) and the sphere of circulation (finished goods, funds in
settlements, short-term financial investments, cash, goods).
Working capital can function in monetary and material form.
The placement of the company's funds is very important in financial
activities and improving its efficiency.
From what allocations are invested in fixed assets and current assets, how
many are in the sphere of production and in circulation in monetary and material
form, how much their ratio is optimal, the results of production and financial
activity and the financial condition of the enterprise largely depend.
If the production capacities of the enterprise are not fully utilized due to the
lack of raw materials, this will negatively affect the financial performance of the
enterprise and its financial position.
The same will happen if excessive production stocks are created and can
not be quickly processed at existing production facilities.
As a result, the capital is frozen, its turnover slows down and, as a
consequence, the financial condition worsens.

28
 And with good results and a high level of profitability, an enterprise may
experience financial difficulties if it has inappropriately used its financial resources
by investing it in excess productive stocks or having a large debt.
The increase in money on the bank accounts is an evidence of the
strengthening of the financial state of the enterprise.
The amount of money should be such that it is enough to pay off all the
priority payments.
The presence of large amounts of money over a long period of time can be
the result of misuse of working capital.
They should be quickly put into circulation in order to make a profit: to
expand the production or invest in shares of other enterprises.
We will analyze the assets of the balance for 3 years at the enterprise
"Primorskij Rice".
The study is presented in the form of table.
2.9. The analysis of asset balance. [13]

Name 2015 2016 2017 2017

in %
Th. % Th. % Th. %
to
Rub. Rub. Rub.
2005

I Non-currents assets

Intangible assets - - - - - - -

Fixed assets 39283 99,5 25894 99, 29087 99,3 74,0

2

Construction in - - - - - - -
progress

Profitable - - - - - - -

29
investments in
tangible assets

Long-term 200 0,5 200 0,8 200 0,7 100,0

financial
investments

Deferred tax - - - - - - -
assets

Other fixed - - - - - - -
assets

Total in section I 39483 100, 26094 100 29287 100, 74,2

0 ,0 0

II Current assets

Inventory 35216 76,0 52232 73, 24414 51,8 69,3

8

Including:

- raw materials 6849 19,4 8547 16, 3629 14,9 53,0

4

- animals on 4712 13,4 6565 12, 7603 31,1 161,4

growing and 6
fattening

- work-in- 8447 24,0 4248 8,1 2939 12,0 34,8

process costs

30
- finished goods 15208 43,2 32872 62, 10243 42,0 67,4
and goods for 9
resale

- shipped goods - - - - - - -

- future expenses - - - - - - -

- other inventory - - - - - - -
and costs

VAT on 7695 16,6 7398 10, 6389 13,5 83,0

purchased assets 4

Accounts - - - - - - -
receivables (over
12 months)

Including buyers - - - - - - -
and customers

Accounts 3154 6,8 11110 15, 15854 33,6 В 5

receivable (under 7 раз
12 months)

Including buyers 3154 6,8 11110 15, 15854 33,6 В 5

and customers 7 раз

Short-term - - - - - - -
financial
investments

31
 Cash 261 0,6 78 0,1 518 1,1 198,5

Other current - - - - - - -
assets

Total in section 46326 100, 70818 100 47175 100, 101,8

II 0 ,0 0

Balance 85809 96912 76462 89,1

Analysis of the dynamics and structure of the asset balance showed that
non-current assets hold: in 2015 - 46% of the asset, in 2016 - 27%, in 2017 - 38%.
As part of non-current assets, the main share is occupied by fixed assets
and is: in 0015 - 99.5%, in 2016 - 99.2%, in 2017 - 99.3%.
In dynamics, there was a decrease in non-current assets by 10196 or by
25.8%.
The decrease was due to a decrease in fixed assets by 10196 thousand rub
or by 26%.
Current assets in the balance: in 2015 - 54%, in 2016 - 73%, in 2017 - 62%.
Analysis of current assets showed that the largest share is held by
inventory: in 2015 - 76%, in 2016 - 73.8%, in 2017 - 51.8%.
In the article "Inventory", the largest share is taken by finished products
and is 43.2% in 2015, 62.9% in 2016, and 42% in 2017.
In the dynamics there was a decrease in inventories by 10802 thousand
rubles or by 30.7%.
Also, a large proportion of current assets belongs to the value-added tax on
purchased assets (2015 - 16.6%, 2016 - 10.4%, 2017 - 13.5%) and accounts
receivable, payments for which are expected within 12 months (2015 - 6.8%, 2016
- 15.7%, 2017 - 33.6%.

32
 In the dynamics there was an increase in the accounts receivable in 2017
compared to 2015 by 12,700 thousand rubles or 5 times.
There was also an increase in cash. In the dynamics it amounted to 257
thousand rubles or 98.5%.
In 2017, compared to 2015, there was an increase in current assets by 849
thousand rubles or by 1.8%.
In general, for the assets of the balance sheet for 3 years, it decreased 9347
thousand rubles or 10.9%.
The information given in the liabilities of balance sheet allows to determine
what changes have occurred in the structure of own and borrowed capital, how
many long-term and short-term borrowings are involved in the turnover; the
liabilities show where the funds came from, whom the enterprise is obligated for.
The financial condition of the enterprise largely depends on what means it
has at its disposal and where they are invested.
By the degree of ownership, the capital used is divided into own (section
III of the liability) and borrowed (sections IV and V of the liability).
In terms of duration of use, capital is defined as long-term permanent (III
and IV sections of liabilities) and short-term (V section of liabilities).
The need for own capital is conditioned by the requirements of self-
financing of enterprises.
It is the basis for the independence of enterprises.
However, one must take into account that financing of the enterprise's
activity only at the expense of its own means is not always beneficial for it,
especially in cases of seasonal nature of production. Then in some periods, large
funds will accumulate on the bank accounts, and in other periods they will be
missing.
In addition, it should be borne in mind that if prices for financial resources
are low, and an enterprise can provide a higher level of return on invested capital
than pays for credit resources, then by borrowing it can improve the profitability of
its own (shareholder’s) capital.

33
 At the same time, if the enterprise's funds are created mainly due to short-
term obligations, its financial position will be unstable due to the need for a rapid
return and short-term use of borrowed funds.
Therefore, the financial position of the enterprise largely depends on how
much the ratio of equity and borrowed capital is optimal. The development of a
correct financial strategy will help many enterprises improve their operations.
The analysis of the company’s liabilities is shown in the table.
Table 2.10. Analysis of liabilities balance. [13]

Name 2015 2016 2017 2017 in %

to 2015
Th. % Th. % Th. %
rub rub rub

III Capital and reserves

Authorized 1000 3,9 1000 3,8 1000 6,1 100,0

capital

Own shares - - - - - - -

Extra capital - - - - - - -

Reserve capital - - - - - - -

Undistributed 2439 96,1 2558 96,2 1549 93,9 63,5

profit 9 2 1
(uncovered
loss)

Total in section 2539 100, 2658 100, 1649 100, 64,9

III 9 0 2 0 1 0

34
 IV Long-term liabilities

Loans and - - - - - - -
credits

Deferred tax - - - - - - -
liabilities

Other long-term 3933 100, 3380 100, 2850 100, 72,5

liabilities 2 0 0 0 1 0

Total in section 3933 100, 3380 100, 2850 100, 72,5

IV 2 0 0 0 1 0

Balance 8580 9691 7646 89,1

9 2 2

Analysis of the dynamics and structure of the liabilities balance has shown
that capital and reserves hold: in 2015 - 29.5% of liabilities, in 2016 - 27%, in
2017 - 22%. In this section, the largest share belongs to undistributed profit and is:
in 2015 - 96.1%, in 2016 - 96.2%, in 2017 - 93.9%. In dynamics there was a
decrease in undistributed profit by 8,908 thousand rubles or by 36.5%.
In general, under the section "Capital and reserves" there was a decrease of
8908 thousand rubles or 35.1%.
Long-term liabilities occupy: in 2015 - 46% of liabilities, in 2016 - 35%, in
2017 - 37%. In this section, 100% is occupied by the item "Other long-term
liabilities".
In the dynamics there was a decrease in other long-term liabilities (and
therefore the whole section) by 10,831 thousand rub or by 27.5%.

2.3. Analysis and characteristics of short-term liabilities of the enterprise

35
 Short-term liabilities occupy the fifth section of the balance sheet.
They comprise the following articles: loans and credits; accounts payable;
indebtedness to participants in the payment of income; revenue of the future
periods; reserves of future expenses; other short-term liabilities.
The article "Loans and credits" reflects information about account 66.
Account 66 "Settlements under short-term loans and credits" is intended to
summarize information on the status of short-term (for a period of not more than
12 months) loans and borrowings received by the organization.
Accounts payable represent a type of obligation that characterizes the
amount of debts due to be paid in favor of other persons.
Accounts payable happen when the organization owes to other
organizations, individual entrepreneurs, individuals, including their own
employees.
It is formed in the calculations for purchased inventory, work and services,
in calculations with the budget, as well as in payroll calculations.
Accounts payable may be terminated by paying all of the debts, and also
written off as unclaimed.
The article "Indebtedness to participants in the payment of income" reflects
information on accounts 75 and 79.
Account 75 "Settlements with founders" is intended to summarize the
information about all kinds of settlements with the founders (participants) of the
organization (a joint stock company, the participants of the general partnership,
members of the cooperative, etc.) for deposits in the authorized (share) capital of
the organization, for payment of income (dividends), etc.
State and municipal unitary enterprises apply this account to deal with all
types of settlements with state bodies and local self-government bodies authorized
to create these enterprises.
Account 79 "Intraeconomic calculations" is intended to summarize
information on all types of settlements with branches, representative offices,
divisions and other separate divisions of the organization allocated to individual

36
balances (intra-balance settlements), in particular, settlements for allocated
property, for mutual release of material values, for sale of products, works,
services, for transferring expenses for general management activities, for
remuneration of employees.
The item "Deferred income" is intended to summarize information on
income received (accrued) in the reporting period, but related to future reporting
periods, as well as future receipts of arrears on shortfalls identified in the reporting
period for past years, and the differences between the amount due recovery from
the perpetrators, and the value of valuables accepted for accounting when
shortages and spoilage are identified.
The article "Reserves for future expenses" is intended to summarize
information on the state and movement of amounts reserved for the purpose of
inclusion of costs in production costs and sales costs.
In particular, the following amounts can be reflected here:
- the forthcoming payment of leave (including payments for social
insurance and security) to the employees of the organization;
- for payment of annual remuneration for long service;
- production costs for preparatory work in connection with the seasonal
nature of production;
- repair of fixed assets;
- the forthcoming costs for land reclamation and other environmental
protection measures;
- for warranty repair and warranty service.
Analysis of the V section of the balance sheet "Short-term liabilities" is
presented in Table 2.11.
Table 2.11. Analysis of shirt-term liabilities. [13]

37
Name 2015 2016 2017 2017 in %
to 2015

Th. % Th. % Th. %

Rub. Rub. Rub.

V Short-term liabilities

Loans and 1405 66,7 1165 32,0 1825 58,0 129,9

credits 4 4 3

Accounts 7024 33,3 2487 68,0 1321 42,0 188,2

payable 6 7

Including

- suppliers and 5039 71,7 2229 89,6 1209 91,5 В 2,4 раза
contractors 5 9

- payables to 615 8,8 1458 59,0 331 2,5 53,8

employees

- payables to 239 3,4 30 0,1 11 0,1 4,6

state off-budget
funds

- tax payables 1071 15,2 1015 4,1 727 5,5 67,9

- other creditors 60 0,9 78 0,3 49 0,4 81,7

Debt to - - - - - - -
participants in
the payment of
income

Future periods - - - - - - -
income
38
 Analysis of the structure of the liabilities of the balance sheet showed that
short-term liabilities occupy: in 2015 - 24.5% of liabilities, in 2016 - 38%, in 2017
- 41%.
The largest share in this section is occupied by loans and borrowings (2015
- 66.7%, 2016 - 32%, 2017 - 58%) and accounts payable (2015 - 33.3%, 2016 -
68%, 2017 - 42%).
In the dynamics, these articles increased by 29.9% and by 88.2%,
respectively.
In the item "Accounts payable", the largest share of debt to suppliers and
contractors is: in 2015 - 71.7%, in 2016 - 89.6%, in 2017 - 91.5%. In the dynamics
there was an increase in this debt by 7060 thousand rub or 2.4 times.
In general, the section "Short-term liabilities" increased by 10,392 thousand
rub or by 49.3% due to an increase in all articles.

39
Chapter 3. Improvement of short-term financing policy for LLC “Primorskij
Rice”

3.1 Advantages of bank loans for the LLC “Primorskij Rice”

Bank loan is the main form of loans. This means that it is the banks that
most often provide their loans to entities in need of temporary financial assistance.
The cycle of funds makes it possible to mobilize temporarily released funds
and at the same time redistribute them in favor of those who need them.
The bank takes over this issue, as the free funds are deposited in the Bank
accounts, and the Bank has information about how these resources can be used.
Bank loans express the economic relations between creditors (banks) and
lending entities (lenders), which can be both legal entities and individuals.
A Bank loan can operate within the national framework and in the form of
an international loan. It is provided with the conclusion of a loan agreement for
each borrower individually in order to make the risk level of the credit transaction
minimal.
The loan agreement is a legal document regulating the relationship between
the Bank and the borrower in the issuance of the loan, defining the mutual rights
and obligations of the parties.
We consider Bank loans as one of the most beneficial ways of short-term
financing of the LLC “Primorskij Rice”.
Bank loan, being the basic and simple method of financing is able to
provide a desired sum of money without imposing sophisticated conditions or
unnecessary contracts and official papers.
All the conditions and terms are clear and on the on the surface. Plus, since
the company deals with the short-term financing, it can count on favorable
conditions of the Bank loan such as:
- interest rates;

Short-term interest rates are usually lower than long-term ones.

40
 “Primorskij Rice” therefore will pay less interest for a short-term loan
because of both the lower interest rate and the shorter amount of time it’ll be
paying interest. Besides, short-term loans can be faster to obtain.
Company can use it to plug cash shortages resulting from unexpected
expenses, sales shortfalls, seasonal effects and the rest.
- lines of credit;

Frequently, businesses set up lines of credit that allow them to borrow

money quickly when it's needed and then pay it back at their own pace.
A line of credit will allow LLC “Primorskij Rice” to borrow and reborrow
money up to the credit limit and only pay interest on the money it actually
borrows. This convenient and flexible short-term borrowing technique will let the
company minimize its interest costs. 

- the impartiality.

Banks do not take any ownership position in businesses.

Also bank personnel, unlike third-party lenders, do not get involved in any
aspect of running a business to which a bank grants a loan. Once a business
borrower has paid off a loan, there is no more obligation to or involvement with
the bank lender unless the borrower wishes to take out a subsequent loan.
There are some more advantages of Bank loans which in our opinion may
suit “Primorskij Rice” – Loans' ability to be tied to the lifetime of the equipment or
other assets the company borrows, repayment holidays (possibility to freeze the
repayments on the capital), no need to give the lender a percentage of company's
profits or a share in the company while you paying the interest on loan.

3.2 Operational leasing as one of the alternative forms of short-term financing

A leasing loan is a relationship between legally independent persons over

the leasing of fixed assets of production or goods for long-term use, as well as
about financing, the acquisition of movable and immovable leased property.

41
 Leasing is viewed, on the one hand, as an alternative to investment, and on
the other - as an alternative to financing.
Leasing is a form of property (commodity) credit and is one of the types of
investment in equipment, real estate and other fixed assets.
Lease payments
During the term of the financial lease, the lessee pays out lease payments,
each of which consists of two components: capital and interest.
The capital component is borrowed capital, or the fair value of the
property.
The interest component is the interest for using the loan.
In the international practice of accounting, the interest on leasing is
calculated on an uneven basis.
The more the outstanding amount of debt, the greater interest paid for it.
Methods for calculating the percentage component.
To calculate the percentage component, the one can use:
- the actuarial method (based on the interest rate);
- the cumulative method.
With a comparative calculation of the percentage component of actuarial
and cumulative methods, the difference usually is insignificant.
Actuarial method
The basis of the actuarial method of calculating interest is the outstanding
principal debt amount and the internal rate of return of the project.
The internal rate of return of a project is the rate of return, which discounts
the net present value of the liability to zero.
The lessee charges the interest on the lease, repays it and partially repays
the principal amount of the debt.
If the first lease payment is made after the asset is received and used, it is
necessary:
- determine the outstanding amount of debt;

42
 - determine the percentage of the lease payment by multiplying the
outstanding amount of debt by the rate of internal return;
- add the interest component to the outstanding debt amount and deduct
the lease payment in the given period, as a result of which the new value of the
outstanding debt amount for the new period will be determined.

If the terms of the agreement provide for the transfer of the asset after the
first payment is made, it is necessary to:
- determine the outstanding amount of debt;
- subtract from the outstanding payment amount a lease payment for a
given period;
- determine the percentage of payment by multiplying the outstanding
amount of debt (less rental payment for a given period) by the rate of internal
profitability;
- add to the outstanding amount of debt (less the lease payment for a
given period) the percentage component, as a result of which the new value of the
outstanding debt amount for the new period will be determined.

Cumulative method
The calculation of the percentage component by the cumulative method is
based on the calculation of the coefficients that reflect the value of the percentage
component in each lease payment.
1. The number of lease payments that contain the percentage component is
determined.
The composition of all lease payments paid at the end of the period
includes the percentage component.
If the first lease payment is made after the receipt and use of the asset, the
interest in this payment is zero.
2. The sum of the numbers of rent payments is calculated using the
formula:
S = N x (N + 1) / 2,
where S is the sum of the lease payment numbers,

43
 N - the number of lease payments (if the first payment is made after the
receipt and use of the asset, the number of payments is reduced by one).
3. The total amount of the interest component is calculated by subtracting
the value of the leased asset from the total amount of the contract.
4. The percentage of each payment is calculated.
The use of the cumulative method in practice is possible only in the case
when all lease payments have the same value, which limits it.
Therefore, along with Bank loans, we consider operational leasing to be a
good method of short-term financing in case LLC “Primorskij Rice” will have to
face the equipment expenses and loses. Equipment leasing is most beneficial to
companies when:
- equipment will not be used long-term;

It doesn’t make sense to make a large cash outlay for equipment that will
only be used for a short period of time.
- company's equipment will become outdated quickly;

If technological advances in your industry tend to make your equipment

obsolete every few years, a short term lease can help you stay up to date.
- cash flow is tight;

With a lease, company avoids a hefty up-front charge, and can make
payments as its generate cash flow with its new equipment.
- company wants to protect its balance sheet;

An equipment purchase is recorded in company's balance sheet, which

increases its debt and reduces its available cash. In contrast, most leases are not
recorded as debt, and are treated as an operating expense.
- company wants the tax benefits of leasing.

One of the most popular advantages of operating leases is the potential

tax benefits.
A lease may allow LLC “Primorskij Rice” to deduct its payments as
operating expenses during the period in which company pay them.

44
 If enterprise purchases equipment, it may be able to deduct the interest,
as well as the cost of the depreciation.

45
 Conclusion

In this paper, short-term sources of financing, forms of attracting short-

term borrowed capital, its types and valuation were considered.
The calculations were made based on the economic indicators of LLC
Primorskij Rice on the basis of annual reports.
In this course work the composition and structure and trace of the dynamics
of changes in marketable products, land, fixed productive assets can be found. An
assessment of the results of financial and economic activities for three years was
made.
Also, in Chapter 2, an analysis of the asset and liabilities of the balance
sheet was made.
Based on these calculations, we can conclude that in 2017 the state of the
enterprise deteriorated, it began to work at a loss.
If in 2015 the return on equity was 17.1%, in 2017 this indicator was
negative (-0.5%). This indicates that the enterprise is unprofitable.
The enterprise needs to adjust the ratio of its own and borrowed funds and
increase return on equity.
To sum everything up, along with the short-term financing methods already
used, LLC “Primorskij Rice” should turn to alternative methods.
In our opinion, the Bank loans should be the most beneficial ones because
of such obvious advantages as interest rate, lines of credit and the impartiality of
the bodies. At the same time, “Primorskij Rice” should go for an operating leasing
in case it will need equipment that will not be used in a long-term; if company's
equipment starts fall into disrepair quickly; if company wants the tax benefits of
leasing or it just wants to protect the balance sheet of the company.

46
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3. Бондарь Н.П. Эффективное управление фирмой: современная теория и
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