scholarly journals Ways to improve minimization of receivables and payments and management by them

2020 ◽  
pp. 26-29
Author(s):  
Olha BONDARENKO ◽  
Iryna MASIUK
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Current Account ◽  
Balance Sheet ◽  
Large Percentage ◽  
Economic Environment ◽  
Accounts Receivable ◽  
Optimal Ratio ◽  
Accounts Payable ◽  
Negative Effect

Introduction. To date, every entity has faced accounts receivable and payable. There are times when debt becomes overdue. An entity cannot repay its debt because debtors do not repay their debt. In fact, receivables and payables are closely linked, which in turn has a negative effect on the balance sheet and financial performance of any counterparty. This article discusses cases of arrears and ways of overcoming (reducing) accounts receivable and payables. The purpose of the paper is to study the factors that influence the increase in accounts receivable and payable within the internal and external activities of the enterprise. Results. In today's economic environment, a large number of Ukrainian enterprises went bankrupt and liquidated because they were unable to pay their debt to creditors. Also this situation arose due to a certain amount of cash, which was in circulation and in time did not enter the current account of the enterprise for payment of accounts payable. On the balance sheet receivables and payables account for a large percentage of both their and others' debt. We'll look at how and under what conditions debt can be reduced. Conclusion. It is advisable to balance receivables and payables in order to control the debt at the enterprise. The constant cash flow should not stop. The debt of the debtors goes to pay off the debt to the creditors. The optimal ratio is when the accounts payable exceeds accounts receivable by 10-20%.

Accounts Receivable: Payable Impact on Each Other with Special Reference to Financial Performance—A Study of Small Cap Companies

2020 ◽  
Vol 47 (4) ◽  
pp. 362-373
Author(s):  
Sangeeta Mittal ◽  
Monika
Keyword(s):  
Financial Performance ◽  
Trade Credit ◽  
Unit Root Test ◽  
Effective Management ◽  
Manufacturing Companies ◽  
Causality Test ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
The Impact ◽  
Test Correlation

Trade credit is important as a funding source for companies having a liquidity shortage. Trade credit comprises of both accounts receivable and payable. The financial literature has discussed the impact of accounts receivable or payable on a company’s financial performance. However, there is a lack of studies on the effects of accounts receivable and payable on each other and further its effect on the financial performance of small-cap companies. Financial performance is determined using the profitability and value of the company. The researchers examined the financial performance implications of offering and receiving trade credit for a sample of 193 BSE small-cap manufacturing companies in India during the period 2011–2019. Granger causality test, Levin, Lin and Chu Unit root test, correlation and regression have been used for data analysis. The finding suggested that accounts receivable influenced the use of accounts payable. The aftermath of accounts payables is that it negatively and significantly affected the profitability and had an insignificant relationship with the value of the company. The result implies that effective management of accounts receivable can influence the application of accounts payable that improves a company’s profits and value. The current study is useful for SMEs’ managers in determining the financial performance and capital structure.

scholarly journals A One Year Forecasting Project For Publicly Traded Companies

2011 ◽  
Vol 4 (9) ◽  
pp. 73
Author(s):  
Fred Petro
Keyword(s):  
Cash Flow ◽  
Team Member ◽  
Balance Sheet ◽  
Annual Reports ◽  
Publicly Traded ◽  
Accounts Receivable ◽  
Publicly Traded Companies ◽  
Income Statement ◽  
History Of ◽  
One Year

This project is intended to teach students to apply the material covered in their first graduate accounting course. This is accomplished by applying the material to an actual company selected by each team. The project is described as follows: The project includes a computerized spreadsheet preparation of a master budget forecast for an actual publicly traded company for one year into the future. . The dates depend upon when the annual reports are prepared for your company. The forecast begins the day following the last available published annual report. The forecast does not comprise any actual numbers regardless of when the actual annual or quarterly statements are prepared for the company selected. The actual balance sheet, income statement and statement of cash flow from the preceding year are included with the forecasted balance sheet, income statement and statement of cash flow. The company must have a physical inventory, and accounts receivable from sales. The company may not be one in which any team member(s) are employed. The forecast will include the following items:1. Introduction, including the history of the company and a description of the company plan and policies as given in the project2. Sales budget (twelve months).3. Schedule of purchases (twelve months).4. Schedule of collection of credit sales (accounts receivable) and cash sales (twelve months).5. Cash budget (twelve months).6. An Income statement (for the current year and the projected year).7. A Balance sheet (for the current year and the projected year).8. A Statement of cash flow (for the current year and the projected year).9. Cost-profit-volume analysis (twelve months).10. Conclusion and recommendations

scholarly journals Principals of Financial Modelling

2011 ◽  
Vol 3 (2) ◽  
pp. 75-88 ◽  
Author(s):  
Sławomir Janiszewski
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Modelling ◽  
The Past ◽  
The Future ◽  
Cash Flow Statement

Principals of Financial ModellingThe financial statements submitted by each company annually reflect their financial performance in the past but are also utilized to forecast the future results in quantitative and realistic frames. The aim of the following elaboration is to thoroughly research all the issues related to financial modelling. The author step by step introduces the reader with theoretical and practical assumptions related to forecasting of respectively, the profit & loss account, balance sheet account and cash flow statement. All of the issues are illustrated with excel spreadsheets that were prepared exclusively for this article purposes.

Managing Economic Calculations of a Company

2015 ◽  
Vol 4 (4) ◽  
pp. 23-27
Author(s):  
Ровенский ◽  
Yu. Rovenskiy ◽  
Наточеева ◽  
N. Natocheeva ◽  
Белянчикова ◽  
...  
Keyword(s):  
Financial Performance ◽  
Debt Management ◽  
Working Capital ◽  
Credit Policy ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Enhance Efficiency ◽  
A Company ◽  
Financial Losses ◽  
Sources Of Capital

The paper considers the issues of how to manage the accounts receivable and accounts payable based on the findings of analysis of thereof. The authors propose to sort out definite stages in debt management and suggest ways to calculate the working capital amount to be allocated to accounts receivable; to assess the company financial performance, subject to the provision of onemonth and three-month discounts to debtors, and to evaluate the effect of the increase in accounts receivable in the upcoming period. All the above help to enhance efficiency of the company’s credit policy and of the accounts payables management and also allow to reduce financial losses related to attracting additional sources of capital.

scholarly journals Back To Basics: Algebraic Foundations Of The Statement Of Cash Flows

2013 ◽  
Vol 7 (1) ◽  
pp. 93-98
Author(s):  
Donald T. Joyner ◽  
Jean-Marie Banatte ◽  
V. Reddy Dondeti
Keyword(s):  
Indirect Method ◽  
Business Students ◽  
Balance Sheet ◽  
Cash Flows ◽  
Black Box ◽  
Net Income ◽  
Undergraduate Level ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Statement Of Cash Flows

The indirect method for preparing the statement of cash flows, as described in many standard textbooks, involves an item-by-item approach, telling you to add to or subtract from the net income, the increases or decreases in the balance sheet items, such as accounts payable or accounts receivable. Many business students, especially at the undergraduate level, find these black-box-rules confusing. In recent years, several articles have appeared in the accounting literature, exploring the link between the algebraic foundations and the enumeration of items in the statement of cash flows. In this paper, an explanation is provided, through an analysis of the basic algebraic equation of the balance sheet, for the black-box-rules of the indirect method in a simple and concise manner.

Accruals and the Prediction of Future Cash Flows

2001 ◽  
Vol 76 (1) ◽  
pp. 27-58 ◽  
Author(s):  
Mary E. Barth ◽  
Donald P. Cram ◽  
Karen K. Nelson
Keyword(s):  
Cash Flow ◽  
Predictive Ability ◽  
Cash Flows ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Aggregate Earnings ◽  
Industry Membership ◽  
Future Cash Flows

Building on the Dechow et al. (1998) model of the accrual process, this study investigates the role of accruals in predicting future cash flows. The model shows that each accrual component reflects different information relating to future cash flows; aggregate earnings masks this information. As predicted, disaggregating accruals into major components—change in accounts receivable, change in accounts payable, change in inventory, depreciation, amortization, and other accruals—significantly enhances predictive ability. Each accrual component, including depreciation and amortization, is significant with the predicted sign in predicting future cash flows, incremental to current cash flow. The cash flow and accrual components of current earnings have substantially more predictive ability for future cash flows than several lags of aggregate earnings. The inferences are robust to alternative specifications, including controlling for operating cash cycle and industry membership.

scholarly journals Flexible accounting methods as a tool for mobilizing the enterprise’s under-utilized potential

2019 ◽  
pp. 145-154
Author(s):  
Anatolii Herasymovych ◽  
Inna Herasymovych
Keyword(s):  
Financial Performance ◽  
Business Processes ◽  
Balance Sheet ◽  
Information Support ◽  
Optimal Method ◽  
Historical Method ◽  
Accounts Payable ◽  
Rapid Pace ◽  
The Moment ◽  
Potential Methods

Introduction. Since traditional accounting is based on the facts of financial and economic performance of enterprises, it does not always and fully display their real capacity, which is crucial to meet the challenge of the dynamic market environment. Methods used in flexible accounting are recognized throughout the world, as they provide a better picture of the internal capacity of the enterprise, and it is displayed in totally new balance sheet accounts and financial records. The study addresses the issue of applying flexible accounting methods and approaches for keeping records of assets (means) and liabilities (resources) in Ukrainian enterprises’ activities. Purpose. The purpose of the article is to highlight the methodological framework of using flexible accounting methods as a tool for mobilizing the enterprise’s under-utilized potential. Methods. The research methods used in the article include: the historical method (for describing the evolution of accounting studies); the method of abstraction (for harmonizing the terminology of accounting engineering); synthesis, induction and deduction (for providing rationale for applying flexible accounting methods); generalization (for making conclusions). Results. The study shows that flexible accounting methods can be used as a tool for mobilizing the enterprise’s under-utilized potential in the following segments: fixed assets – based on the optimal method of inventory accounting; inventory items – through the best values at the moment of goods release; bad debtors – through diversification when receivables are paid; creditors – through diversification when accounts payable are settled; of cash – a real prediction of their revenues in order to calculate the financial results of the enterprise; cash assets – through prediction of cash inflows and calculation of financial performance of the enterprise. Discussion. The rapid pace of the current scientific and technological breakthrough, the further globalization of the economy, and increased competition have led to the need for more effective management of business processes and financial performance, and to the search for material, human and financial resources. That has promoted accounting engineering viewed as one of the tools of flexible accounting. Further research efforts should be directed at approaches and techniques of information support for enterprise resource management.

scholarly journals ANALISIS RASIO ARUS KAS DALAM MENILAI KINERJA KEUANGAN PADA PT. PLN (PERSERO) WILAYAH SULUTTENGGO

2018 ◽  
Vol 13 (02) ◽  
Author(s):  
Megi Sila Jona Warongan ◽  
Ventje Ilat ◽  
Natalia Gerungai
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Balance Sheet ◽  
The State ◽  
Quantitative Approach ◽  
The Other ◽  
Flow Ratio ◽  
Operational Activities ◽  
Main Activity ◽  
Descriptive Method

Cash is one of the most liquid account compared to the other accounts within the company’s balance sheet. The statements of cash flow contains information of actual cash position occurring in the company’s operational activities. By using cash flow ratios, development of the company’s financial performance from year to year can be analyzed. This study aims to determine and assess financial performance based on cash flow ratios in PT. PLN (Persero) Suluttenggo Region, by using a descriptive method with a quantitative approach. The results showed that the state of PT. PLN (Persero) Suluttenggo Region’s financial performance is less good. This is because four of the five cash flow ratios assessed experienced a decrease from the ratio in 2014, and only the ratio of cash flow to interest in 2016 increased from the previous years. Increasing the company’s cash is very important for PT. PLN (Persero) Suluttenggo Region, especially on operational activities which is the main activity of the company’s cash so that in the future, the company’s financial performance will get better.Keywords: cash, cash flow ratio, cash flow statement, financial performance

Forecasting For Publicly Traded Companies

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Fred Petro
Keyword(s):  
Cash Flow ◽  
Team Member ◽  
Balance Sheet ◽  
Annual Reports ◽  
Publicly Traded ◽  
Accounts Receivable ◽  
Publicly Traded Companies ◽  
Income Statement ◽  
History Of ◽  
One Year

This project is intended to teach students to apply the material covered in their first graduate accounting course. This is accomplished by applying the material to an actual company selected by each team. The project is described as follows: The project includes a computerized spreadsheet preparation of a master budget forecast for an actual publicly traded company for one year into the future. The dates depend upon when the annual reports are prepared for your company. The forecast begins the day following the last available published annual report. The forecast does not comprise any actual numbers regardless of when the actual annual or quarterly statements are prepared for the company selected. The actual balance sheet, income statement and statement of cash flow from the preceding year are included with the forecasted balance sheet, income statement and statement of cash flow. The company must have a physical inventory, and accounts receivable from sales. The company may not be one in which any team member(s) are employed. The forecast will include the following items: Introduction, including the history of the company and a description of the company plan and policies as given in the project, Sales budget (twelve months), Schedule of purchases (twelve months), Schedule of collection of credit sales (accounts receivable) and cash sales (twelve months), Cash budget (twelve months), An Income statement (for the current year and the projected year), A Balance sheet (for the current year and the projected year), A Statement of cash flow (for the current year and the projected year), Cost-profit-volume analysis (twelve months), and Conclusion and recommendations.

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

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