Michael Bierut On How To Organize Your Essay

6 steps to write a project proposal

The direct method has a shortcoming: it does not open interrelation of the received financial result and change of size of money on accounts of the enterprise (the enterprise gets net profit, and its money is reduced). In the analysis of cash flow the indirect method will transform the size of net profit to the size of money, i.e. the nadostatok of a direct method of the analysis improves.

Decrease in coefficient of profitability of the realized production can be caused by changes in structure of realization, decrease in individual profitability of the products entering into the realized production, etc.

To variable (production) expenses factor material inputs, a salary of the production personnel treat with the corresponding assignments, and also expenses according to the contents and operation of the equipment and some other general production expenses.

Cash flow in a section of investment activity is connected with acquisition (realization) of the property having long-term use (first of all - receipt (leaving of fixed assets and non-material an asset.

Let's note that the analysis of the calculated coefficients of profitability has practical usefulness only in case the received indicators are compared with data of previous years or similar indicators of other enterprises.

authorized capital - cost reflection of a cumulative contribution of founders (the owner in property of the enterprise at its creation. The size of authorized capital is defined by constituent documents and can be changed only according to the decision of founders of the enterprise and entering of corresponding changes into constituent documents;