CONTENT

CHAPTER I. CONTENTS AND TECHNIQUE OF MANAGEMENT OF IN CASH OF THE ENTERPRISE 4

1.1. Purposes and organization of management of enterprise cash flows 4

1.2. Models and methods of target regulation monetary flows 7

CHAPTER II ANALYSIS OF MONETARY FUNDS MOVEMENTS 13

2.1. Structure and the analysis of inflows and outflows of money activity, the analysis of interaction monetary flows 13

2.2. Forecasting and optimization of monetary cash 22

CHAPTER III. IMPROVEMENT OF MANAGEMENT OF ENTERPRISE MONETARY FUND 39

Conclusion 57

List of literature 58

Introduction

Cash flow of firm represents continuous process. For each direction of use of monetary funds there has to be a relevant source. In a broad sense assets of firm represent pure use of money, and liabilities and own capital - pure sources. For the operating enterprise really there is no initial and final point. The final product is a set of expenses of raw materials, the fixed assets and work eventually paid with money. Production then is on sale either for cash, or on credit. Sale on credit involves receivables which eventually are collected, turns into cash. If sale price of production exceeds all expenses (including wear of assets) for some period, for this period the profit will be got; the mudflow isn't present - a loss. Amount of money fluctuates in time depending on the production schedule, sales volume, collection of receivables, capital expenses and financing. On the other hand, raw materials stocks, a work in progress, reserve; finished goods, receivables and the commercial credit which is subject to payment fluctuate depending on realization, the production schedule and policy for the main debtors, stocks and debt on the commercial credit.

The report on existence and use of money is a method by means of which we study pure change of volume of means between two moments. These moments correspond to initial and final dates of the financial report, research - to quarter, year or the fifth anniversary belonged to whatever period. The report on sources and use of money describes rather pure, than the general changes in a financial position for different dates. The general changes are all changes which happen between two reporting dates, and pure changes are defined as result of the general changes.

The purpose of the real work is research of a technique of management of in cash of the enterprise with use of the analysis of cash flows, and also development of ways on optimization of funds of the enterprise and improvement of ways on their management.

CHAPTER I. CONTENTS AND TECHNIQUE OF MANAGEMENT OF IN CASH OF THE ENTERPRISE

1.1. Purposes and organization of management of cash flows of the enterprise

Management of cash flows is one of the most important activities of the financial manager. It includes calculation of time of the address of money (a financial cycle), the analysis of a cash flow, its forecasting, definition of an optimum level of money, drawing up budgets of money, etc. The importance of such type of assets as money, according to John Keynes, is defined by three main reasons:

- conventionalism money is used for performance of the current operations as between the entering and proceeding cash flows always there is a time log, the enterprise is compelled to hold constantly free money on the settlement account;

- precaution - activity of the enterprise has no rigidly predetermined character therefore money is necessary for performance of unforeseen payments;

- speculatively - money is necessary for speculative reasons as constantly there is a nonzero probability of that opportunity of favorable investment will unexpectedly be given.

At the same time necrosis of financial resources in the form of money is connected with certain losses - with some share of convention their size can be estimated the extent of the missed benefit from participation in any available investment project. Therefore any enterprise has to consider two mutually excluding circumstances: maintenance of the current solvency and receiving additional profit on investment of free money. Thus, one of the main objectives of management of monetary resources is optimization of their average current rest.

Existence at the enterprise of money quite often we contact, whether its activity is profitable or not. However such communication isn't always obvious. Events of the last years when the problem of mutual non-payments sharply became aggravated, call in question absolute firmness of direct link between them indicators. It appears, the enterprise can be profitable according to accounting and at the same time experience considerable difficulties in current assets which finally can cause not only social economic intensity in relationship with contractors, financial bodies, workers, but in a final step (still theoretically) to result in bankruptcy.

The operational cycle characterizes the general time during which financial resources are deadened in stocks and receivables. As the enterprise pays bills of suppliers with a temporary log, time during which money is abstract from a turn, i.e. a financial cycle, it is less on the average time of the address of accounts payable. Reduction of operational and financial cycles in dynamics is considered as a positive tendency. If reduction of an operational cycle can be made due to acceleration of production and turnover of receivables, the financial cycle can be reduced both at the expense of these factors, and due to some noncritical delay of turnover of accounts payable.

Thus, the duration of a financial cycle (DFC) in days of a turn pays off on a formula

DFC=DOC-TAP=TAS+TAR-TAP

where:

DOC - duration of an operational cycle;

TAP - time of the address of accounts payable;

TAS - time of the address of production stocks;

TAR - time of the address of receivables.

T - length of the period on which average values pay off (as a rule, year, i.e. T=365).

Information support of calculation - accounting reports. Calculation can be carried out in two ways: a) according to all available information about receivables and payables; b) by data about the receivables and payables which is directly relating to production.

The purpose of management of money consists in investing surplus of the monetary income for receiving profit, but at the same time to have their necessary size for implementation of obligations for payments and simultaneous insurance on a case of unforeseen situations. The cash flows of firm are more predictable, the need for insurance is less. Management of money begins the buyer (debtor) of the check for payment of production with the extract moment and comes to an end with payments to creditors, the personnel, budgets, etc. to persons. Thus management of money is closely connected with management of accounts payable because managers of firm regulate terms of its payment.