Outflow from financial activities. Types of cash flows. How to calculate cash flow from core business

Cash flow concept

Cash flow from investing activities

Cash flow from operating activities

Cash flow from financial activities

Cash flow calculation (table forms)

1. The concept of cash flow

The present value is calculated based on discounting only cash flow (C ash flow ), which, in general, means the turnover of money of a certain direction or type of activity, proceeding continuously in time. It is advisable to understand the flow of money as the difference between the amounts of money received by the investor to the current account and to the cash desk (inflows of money), and the amounts leaving the current account and from the cash desk (outflows of money).

It is recommended to denote the cash flows of individual entrepreneurs through CF ( t ), if they refer to a point in time t, or through CF(m), if they refer to m-th step. Cash flows of the project are classified depending on the individual types of activities:

1.Cash flow from investing activities CFand(t);

2. cash flow from operating activities CFPho (t);

3.Cash flow from financing activities CFf (t).

Within each of these three types of activities during any m-th calculation period (step) - month, quarter, year - the cash flow is characterized by:

and)inflow P (m) funds equal to the amount of cash receipts to the current account and to the cashier (cash inflows are determined the resultiP implementation in value terms at this step);

b)outflow О (m) funds equal to the payments at this step;

c) balance (active balance, effect),equal to the difference between inflow and outflow.

2. Cash flow from investment activities

For cash flow from investment activities:

to outflowsrelate:

capital investments,

start-up costs,

project liquidation costs,

costs for took awayreadingworking capital.

This also includes non-capitalizable costs (payment of tax on the land used for the project, expenses for the construction of external infrastructure facilities). Investment cost information should include information classified by cost type. The distribution of investment costs over the construction period should be linked to the construction schedule;

to tributaries:

sale of assets during and after the end of the project (in this case, it is necessary to take into account the payment of the corresponding taxes, which will be cash outflows),

receipts by reducing working capital.

3. Cash flow from operating activities

For cash flow from operating activities:

to outflows relate:

production costs;

to tributaries:

revenues from sales,

other income, including income from funds invested in additional funds.

4. Cash flow from financial activities

To financial activitiestransactions with funds external to the project,that is, they do not come from the project. They consist of the equity capital (equity for JSC) of the company and borrowed funds.

For cash flow from fifinancial activities:

to outflowsinclude: the cost of returning and servicing loans and debt securities issued by the enterprise (in full, regardless of whether they were included in inflows or in additional funds), as well as, if necessary, for the payment of dividends on shares;

to tributaries- investments of equity capital and borrowed funds (subsidies, grants, borrowed funds, including through the issuance of its own debt obligations by the enterprise.

The present value is calculated based on discounting only cash flow ( cash flow) , which in the general case means the turnover of money of a certain direction or type of activity, proceeding continuously in time. It is advisable to understand the flow of money as the difference between the amounts of money received by the investor to the current account and to the cash desk (inflows of money), and the amounts leaving the current account and from the cash desk (outflows of money).

It is recommended to denote the cash flows of individual entrepreneurs through Ф (t)if they refer to a point in time t, or through F (m)if they refer to mmy step. Cash flows of the project are classified depending on the individual types of activities:

Cash flow from investing activities Ф И (t); operating cash flow Ф О (t) cash flow from financing activities Ф Ф (t)Within each of these three activities, during any m th settlement period (step) of the month, quarter, year, the cash flow is characterized by:

and) inflow P (m)funds equal to the amount of cash receipts to the current account and to the cashier (cash inflows are determined resultiP implementation in value terms at this step);

b) outflow О (m)funds equal to the payments at this step;

at) balance (active balance, effect)equal to the difference between the inflow and outflow.

For cash flow from investment activities: to outflowsinclude capital investments, commissioning costs, project liquidation costs, costs of increaseworking capital, funds invested in additional funds. This also includes non-capitalizable costs (payment of tax on the land used for the project, expenses for the construction of external infrastructure facilities). Investment cost information should include information classified by cost type. The distribution of investment costs over the construction period should be linked to the construction schedule;

TO tributaries sale of assets during and after the end of the project (in this case, it is necessary to take into account the payment of the corresponding taxes, which will be cash outflows), receipts from decreaseworking capital.

For cash flow from operating activities:

TO outflowsinclude production costs and taxes;

TO tributaries proceeds from sales, other and non-operating income, including receipts from funds invested in additional funds.

TO financial activitiestransactions with funds external to individual entrepreneurs,that is, they do not come from the project. They consist of the equity capital (equity for JSC) of the company and borrowed funds. For cash flow from financial activities:

TO outflowsincludes the costs of returning and servicing loans and debt securities issued by the company (in full, regardless of whether they were included in inflows or in additional funds), as well as, if necessary, to pay dividends on shares

TO tributaries investments of equity capital and borrowed funds (subsidies, grants, borrowed funds, including through the issuance of its own debt obligations by the enterprise.

It is recommended to calculate cash flows from investment, operating and financial activities for each stage of an investment project using special tables.

Cash flows from investment activities are calculated based on Table 1, where the letter "Z"outflows of money (for the acquisition of assets and increaseworking capital), taken into account with the minus sign, and the letter "P" inflows of money (from liquidation of capital funds and decreaseworking capital, recorded with a plus sign:

To calculate cash flows from investment activities, it is important to pay attention to the following: the main components of working capital are: stocks of raw materials and finished goods, accounts receivable and payables.

Magnificationworking capital is associated either with an increase in inventories and / or receivables (that is, buyers' debt to the firm), or with a decrease in accounts payable (the enterprise's debt to its suppliers). In terms of cash flows, an increase in inventory or receivables means that the company has not received real money: finished products and raw materials are in the warehouse unrealized, and the buyers of the company's goods did not transfer money on time for the delivered products. Therefore, these amounts are referred to cash outflows. Similarly, if the company has reduced accounts payable, that is, paid off part of its debts, then these amounts are referred to cash outflows.

Forecasting is the backbone of any trading system, so professionally done can make you very wealthy.

Cash flows of money from operating roomactivities are calculated according to Table 2.

Variablescosts depend on the volume of products produced (costs of raw materials, labor, etc.), and permanentcosts are not related to the volume of production of goods and services; they are present at any volume of output and can be at a zero calculation step (rent, management, etc.).

Separate accounting of depreciation for buildings and equipment is determined by linking it to net residual value.

When taking into account depreciation costs, it is necessary to pay attention to the fundamental point: taken into account when evaluating investment projects money flows(their inflows and outflows) are not identical to the concepts of income and costs. Impairment of assets and depreciation of property, plant and equipment reduce net income; calculation of depreciation deductions is necessary to determine the amount of profit (line 9) and finding the amounts of taxes (line 10), but does not imply transactions for transferring money from the current account, therefore depreciation deductions should not be taken into account in the calculation money flows... That is why net inflow from operations(line 13) is obtained by summing the projected net income (line 11) with depreciation charges (line 7 plus line 8).

On the other hand, the acquisition of capital assets does not belong to production costs and is not taken into account in the calculation of profit, but is an outflow of money and is included in the calculation of cash flows.

When calculating taxes, it must be borne in mind that if losses are shown in line (9), then tax on line (10) is accounted for with a minus sign and its value addedto the amount of profit.

Net residual value (net cash flow at the stage of liquidation of the object) is determined based on the data given in table 3:

Market valuethe elements of the object are assessed by the managers of the company, based on those changes in the market situation that are expected in the area of \u200b\u200bthe investment object (for example, a sharp increase in demand for industrial buildings, etc.). Calculations should also be carried out in nominal (forecast) prices, taking into account inflation. We take the item “costs” from Table 1 (these data correspond to the initial cost of fixed assets at the time of the start of the investment project), and the depreciation values \u200b\u200bfrom Table 2. The residual value is determined as the difference between the initial costs (the cost of acquiring real assets) and depreciation. “Liquidation cost” is an estimate predicted by the firm's managers.

Capital gains (line 6) are related to land only and are defined as the difference between its market (line 1) and residual (line 4) values \u200b\u200bminus disposal costs. Land depreciation costs are not charged. Operating income (losses) refers to the remaining elements of capital, that is:

(line 7) \u003d (line 1) [(line 4) + (line 5)]

The net residual value of each item is the difference between its market value (line 1) and the amount of tax withheld (line 8). It should be remembered that if in line 7 there is a negative value (losses), then on line 8 income must be shown with a minus sign and its value addedto the market value when calculating the net liquidation value.

Let's transfer the data from Table 3 to Table 1, bearing in mind that for each element of capital assets at the liquidation step, the costs will be taxes, and the receipts will be their market value.

Based on the data in tables 1 and 2, you can begin to calculate the net present value of the project.

Money flows from financialactivities Form 3it is recommended to calculate according to table 4:

Real money current balanceb (t)defined through B (t)according to the formula: b (t) \u003d B (t) B (t 1), while the initial value of the balance of accumulated money B (0)is taken equal to the value of the amount on the current account of the project participant at the initial moment t \u003d 0. The necessary criterion for making an investment decision in this case is the positive value of the balance of accumulated money B (t)at any stageinvestment project. A negative balance of accumulated money indicates the need to attract additionalborrowed or own funds.

Thus, using tables (1) (4), using the methodology for calculating the indicators indicated in them, one can find the net present value of the project and determine the feasibility of investing in it.

In the course of its activities, an enterprise or company generates various cash flows. They can have a different focus - on the inflow or outflow of funds, i.e. income or costs. The presence of free money in the cash desk or in bank accounts gives the company the opportunity to reinvest it or invest in another business in order to get additional profit.

All cash flows as a result of the operation of an enterprise are divided into three main types:

investment, which are aimed at ensuring the development of the company;
operating rooms received from the main activity;
financial flows, which are based on financial transactions: raising loans, paying off debts, issuing shares, paying dividends.

Put together, they form the Net Cash Flow (NCF) value.

Operational cash flow (OCF, Operation Cash Flow) is cash that comes from the operating activities of a firm. This indicator is one of the most important indicators of the company's success, since many obligations are usually paid off at its expense. It characterizes the business even more accurately than the rate of return, since it is not uncommon for a company to make a profit, but there are not enough funds to pay the bills. Sometimes this criterion is also used to assess the quality of a firm's income. Some companies pursue a policy of "aggressive accounting", when, with high incomes, they have no cash in their accounts.

The income part of the flow from the main activity is only the amount of funds from the proceeds for the manufactured products (sales, sales). The costly part includes:

costs of organizing production (purchase of raw materials, payment for energy carriers);
staff salaries (sometimes it is displayed separately);
general expenses (office supplies, rental of premises, utility bills, insurance premiums);
advertising budget;
repayment of interest on loans and credits;
taxes (profit, payroll, VAT).

Operating cash flow is understood as income from operating activities after deducting operating expenses. After some adjustments, it can be considered as net income. You can find the amount of OCF using the cash flow statement.

How to calculate cash flow from core business

To calculate different kinds of cash flows, two methods are usually used: direct and indirect. The difference between them lies in a number of parameters, including the initial data on the movement of money through the company's accounts. The funds studied in finding the cash flow from operating activities include indicators that are not considered when calculating profits, in particular depreciation, taxes, capital expenditures, advances, loans, debts and fines.

Direct method relies on the study of the movement of finance in the accounts of the firm. It makes it possible to study the main directions of outflow and sources of money inflow, analyze flows for various types of activities and the relationship between revenue for a certain period and product sales.

Direct operating cash flow is calculated using the following formula:

NPP (OD) \u003d V + WUA + PP - OT - SM - PRVOD - NALPL

wherein:

B - the amount of proceeds from the sale of products, services or works;
WUA - advances listed by customers and buyers;
PP - other receipts from customers and buyers;
SM - funds for which material and commodity values \u200b\u200bwere purchased for organizing production;
NAPL - taxes paid and contributions to various extra-budgetary funds;
OT is money spent on staff salaries;
REDD - other payments that may arise in the course of the main activity.

Let's try to calculate the cash flow from the internal activities of the enterprise, based on the following input (all indicators in rubles):

revenue from products sold - 1 million;
advances from buyers - 100 thousand;
other receipts from customers - 40 thousand;
payroll fund - 100 thousand;
costs for raw materials and support of the production process - 400 thousand;
contributions and taxes - 250 thousand;
other expenses - 70 thousand.

NPP (OD) \u003d 1,000,000 + 100,000 + 40,000 - 100,000 - 400,000 - 250,000 - 70,000 \u003d 1,140,000 - 820,000 \u003d 320,000 rubles.

When indirect method the calculation is based on the data of the balance sheet and the report on the results of financial activities. The calculation is carried out in the context of the types of economic activity, while clarifying the relationship between changes in the value of assets for a certain period and net profit.

An indirect calculation can be demonstrated using the following formula:

NPR (OD) \u003d NPR (OD) +AM + ΔKRZ + Δ DBZ + ΔZAP + ΔDBP + ΔFV + ΔАВП + ΔАВВ + ΔРПП + ΔРБП

NPR (OD) - net profit from internal activities;
AM - depreciation and amortization;

as well as a number of changes indicated by the sign Δ, relative to:

Δ KRZ - the amount of accounts payable;
Δ DBZ - the amount of receivables;
Δ ZAP - the amount of reserves;
Δ DBP - incomes expected in future periods;
Δ ФВ - financial investments;
Δ WUA - advances received;
Δ ABB - advances issued;
Δ РПП - reserve for payment of payments and expenses in the next period;
Δ BPR - expenses for the coming periods.

Let's predict the indicators of the accounting report for the previously mentioned enterprise (in thousand rubles) and find the operating flow by the indirect method:

undivided profit - (+) 400;
depreciation and wear - (+) 100;
creditor - (+) 150;
accounts receivable - (-) 120;
stock dynamics - (-) 60;
future income - (+) 130;
financial investments (-) 90;
received advances - (+) 30;
advances issued - (-) 70;
reserves - (-) 180;
forthcoming expenses - (-) 110.

NPP (OD) \u003d 400 + 100 + 150 - 120 - 60 + 130 - 90 + 30 - 70 - 180 - 110 \u003d 180.

Consequently, the cash flow from the firm's core business calculated by the indirect method is 180 thousand rubles.

Standard calculation formula

Despite the fact that the above calculations are easy to understand, generally accepted notation is usually used, and the calculation is carried out according to the following formula:

OCFt \u003d EBIT + DA - T,

- profit from core activities, i.e. the amount of the company's profit before taxes and interest;
DA - deductions for depreciation and amortization;
T is the amount of income tax.

There are differences between financial management and accounting in understanding cash flow from internal activities. In accounting, OCFt is considered as the sum of depreciation and net profit, in financial management, interest is also taken away for the use of credit resources.

This indicator is also used to determine some more important values \u200b\u200bused for financial analysis and business valuation.

So, if you add up the profit from operating activities (EBIT) and depreciation charges (DA), we get an important criterion for EBITDA (operating performance in monetary terms). If profit tax is subtracted from the same EBIT, then we get the amount of operating net profit after taxes NO PAT.

Theoretical aspects of managing the company's cash flows and liquidity

Smolina Irina Sergeevna,

student of the faculty of magistracy of the Samara State Economic University.

As you know, effectively organized cash flows of a company are the most important symptom of its "financial health", a prerequisite for ensuring sustainable growth and achieving high final results of economic activity in general. This becomes especially important in modern conditions, when the further successful functioning of the company often depends on the imbalance of cash flows in a short period.

To understand the mechanisms of cash flow, first of all, it is necessary to get an understanding in the field of concepts such as "cash flow", "liquidity", consider the classification of cash flows, as well as the direction of cash flow in the context of activities: current, investment and financial.

Cash flows are the aggregate of cash receipts and payments from the operating, investing and financing activities of a company.

Cash flows from operating activities are associated with current operations on receipt of proceeds from sales, payment of suppliers' invoices, obtaining short-term loans and borrowings, payment of wages, and settlements with the budget. Cash flows (outflows) in the course of investment activities, as a rule, are directed to the acquisition of fixed assets, intangible assets. Cash flows from financing activities - receipts and payments of funds associated with raising additional share capital or share capital, obtaining long-term and short-term loans and borrowings, paying dividends and interest in cash on deposits of owners, and some other cash flows associated with the implementation of external financing the economic activities of the organization.

The classification of the company's cash flows is carried out according to many criteria, we will consider only a few of them, the most important, in our opinion:

1. By type of economic activity:

a) cash flow from operating activities;

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b) cash flow from investment activities;

c) cash flow from financial activities.

2. By the direction of cash flow:

a) positive cash flow;

b) negative cash flow.

3. By the nature of the cash flow in relation to the company:

a) external cash flow;

b) internal cash flow.

4. According to the level of cash flow sufficiency:

a) excess cash flow;

b) scarce cash flow.

5. If possible, regulation in the control process:

a) cash flow that is amenable to regulation;

b) cash flow that is not amenable to regulation.

6. If possible to ensure solvency:

a) liquid cash flow;

b) illiquid cash flow.

By type of economic activity in accordance with international accounting standards, the following types of cash flows are distinguished:

Operating cash flow... It is characterized by cash payments to suppliers of raw materials and supplies; salaries to personnel involved in the operational process, as well as managing this process; tax payments of the company to the budgets of all levels and to off-budget funds. At the same time, this type of cash flow reflects cash receipts from buyers of products; from tax authorities in order to recalculate amounts overpaid and some other payments provided for by international and national accounting standards.

Cash flow from investing activities... It characterizes payments and cash flows associated with the implementation of real and financial investments, the sale of retired fixed assets and intangible assets, and other similar cash flows serving the investment activities of the company.

Cash flow from financial activities... It characterizes the receipts and payments of funds associated with attracting additional share capital and share capital, obtaining long-term and short-term loans and borrowings, paying dividends in cash and interest on the owners' deposits and some other cash flows associated with the implementation of external financing of the company's economic activities.

By the direction of cash flow funds allocate two main types of cash flows:

Positive cash flow, characterizing the totality of cash inflows to the company from all types of business transactions.

Negative cash flowcharacterizing the totality of payments of funds by the company in the process of carrying out all types of its business operations.

By the nature of the cash flow to the company, it is divided into two types:

Internal cash flow... It characterizes the totality of receipts and expenditures of funds within the company. These receipts and payments are associated with operations due to the monetary relations of the company with staff, founders (shareholders), subsidiary structural divisions, etc. In the total cash flow of the company, its internal cash flow has a small share.

External cash flow... This type of cash flow serves the company's operations related to its monetary relations with business partners and government agencies. The volume of this type of cash flow is the predominant part of the company's total cash flow.

By the level of sufficiency cash flow distinguish the following types of company cash flows:

Excess cash flow... It characterizes such a cash flow in which cash inflows significantly exceed the company's real need for purposeful spending. The evidence of excess cash flow is a high positive value of net cash flow that is not used in the course of the company's business activities .

Deficit cash flow... It characterizes such a cash flow, in which cash inflows are significantly lower than the company's real needs for purposeful spending. Even with a positive value of the amount of net cash flow, it can be characterized as a deficit if this amount does not satisfy the planned need to spend money in all the foreseen areas of the company. A negative value of the amount of net cash flow automatically makes this flow deficit.

Where possible regulation in the management process, there are:

Cash flow that can be regulated... It characterizes this type of cash flow, which can be changed in time or in volume at the request of managers. An example of this type of cash flow is the sale of a company's products on credit, the issue of shares or bonds, etc.

Unregulated cash flow... It characterizes a type of deterministic cash flow that cannot be changed in time or in volume by the company's managers without negative consequences for the final results of its economic activity. An example of such a cash flow is a company's tax payments, payments for servicing and repayment of its debt, etc.

If possible to ensure solvency distinguish between the following two types of company cash flow:

Liquid cash flow... It characterizes the type of cash flow of the company, according to which the ratio of positive and negative cash flows is equal to or exceeds one in each interval of the considered period of time, i.e. the condition is met:

ADP / PDP ≥ 1,

where RAP is the sum of the gross positive cash flow of the company in each of the intervals of the considered period of time; MTF - the sum of the gross negative cash flow of the company in each of the intervals of the considered period of time.

Illiquid cash flow.It characterizes the type of cash flow of the company, according to which the ratio of its positive and negative types is less than one in certain intervals of the considered period of time (and for the period as a whole), i.e. the condition is met:

RAP / EFA< 1,

where RAP is the sum of the gross positive cash flow of the company in certain intervals of the considered period of time; EFA is the sum of the gross negative cash flow of the company in certain intervals of the considered period of time.

The above classification allows for targeted accounting of cash flows, as well as timely and efficiently analyze and plan the company's cash flows.

As mentioned above, it is customary to consider the directions of cash flow in the context of the main types of activity - current (operating, main), investment, financial.

Current activity includes the receipt and use of funds that ensure the implementation of the main production and commercial functions. Below are the main directions of cash inflow and outflow in the framework of the main activity (see table 1).

Table 1.

Cash inflow and outflow from current activities.

Inflow	Outflow
Revenues from the sale of products, works, services	Payments on invoices of suppliers and contractors
Receiving advances from buyers and customers	Payment of wages
Other income (return of issued reporting amounts, etc.)	Contributions to off-budget funds and social insurance fund
	Calculations with the budget for taxes
	Payment of interest on a loan

Investment activities includes the receipt and use of cash associated with the acquisition, sale of long-term assets and investment income. Below are the main directions of cash inflow and outflow in the framework of investment activities (see table 2).

Table 2.

Cash inflows and outflows from investing activities.

Inflow	Outflow
Proceeds from the sale of non-current assets	Acquisition of long-term property
Dividends and interest from long-term financial investments	Capital investment
Return of other financial investments	Long-term financial investments

Financial activities includes cash inflows from obtaining loans or issuing shares, as well as outflows associated with the repayment of debt on previously received loans and the payment of dividends (see table 3).

Table 3.

Cash inflows and outflows from financing activities.

Inflow	Outflow
Loans received, loans	Return of previously received loans
Issue of shares, bonds	Payment of dividends on shares and interest on bonds
Receiving dividends on shares and interest on bonds	Redemption of bonds

It is obvious that it is necessary and expedient to summarize for each area of \u200b\u200bactivity. Thus, the prevalence of cash outflow for current activities indicates that cash is not enough to ensure the current payments of the enterprise. In this case, the lack of funds will be covered by borrowed resources. If, in addition to this, there is an outflow of funds from investment activities, then this, in turn, indicates a decrease in the financial independence of the company.

One of the conditions for the financial well-being of the company is the flow of funds. However, their excessive value suggests that the company is actually suffering losses associated with the depreciation of money, as well as with the missed opportunity of their rational allocation. This suggests that it is necessary to manage cash flows, and for this, at the first stage, the share of cash in current assets in current liabilities is analyzed, that is, the current liquidity ratio is determined according to the following formula:

where VLA - highly liquid current assets (cash on hand and on settlement accounts); KO - short-term liabilities.

Liquidity is an economic term that refers to the ability of an asset to be sold quickly at near market prices. Liquid - convertible into money. Usually distinguish between highly liquid, low-liquid and illiquid values \u200b\u200b(assets). The easier and faster you can get the full value of an asset, the more liquid it is.

In practice, the absolute liquidity ratio shows what part of the current debt can be repaid on the date of the balance sheet (form No. 1). A value greater than 0.3 is considered normal. The higher this ratio, the higher the company's solvency, however, too high values \u200b\u200bof this ratio may indicate an irrational structure of capital, a high proportion of non-performing assets in the form of funds in current accounts in banks and cash. Values \u200b\u200bbelow the specified ratio, on the contrary, indicate a shortage of funds in the company. In such conditions, the current solvency will fully depend on the reliability of the debtors.

Literature

1. Blank I.A. Enterprise asset and capital management. - M .: Nika-center Elga, 2008 - 815 p.

2.Kapranov N.S. "Cash flow management to increase the company's value", Journal "Audit and financial analysis" No. 3, 2007.

3.Kapranov N.S. "Optimization of cash flows at enterprises", Journal "Finance and Credit" No. 23, 2007.

4. Kovalev V.V., Management of cash flows, profit and profitability. - M .: Prospect, 2008 .-- 336 p.

5. Neveshkina E.V. Management of financial and commodity flows at trade enterprises. - M .: Dashkov and K, 2009 .-- 192 p.

Received October 31, 2012

E.V. Neveshkina Management of financial and commodity flows at trade enterprises. - M .: Dashkov and K, 2009 .-- 192 p.

3. Cash flow from financial activities.

It characterizes receipts and payments of funds associated with attracting additional or share capital, obtaining loans and borrowings, paying dividends in cash on deposits to the owners of the enterprise and some other cash flows associated with the implementation of external financing of the economic activities of the enterprise.

Within the framework of certain types of economic activities of the enterprise, cash flows can also be classified according to the directions of cash flows:

· Positive cash flow (cash inflow) characterizes the totality of all types of cash inflows.

· Negative cash flow (cash outflow) characterizes the totality of cash payments. The interrelation of these types of cash flows is manifested in the fact that the lack of volumes in time of one of these flows causes subsequent reductions in the volumes of another type of these flows.

· Gross cash flow characterizes the difference (balance) between positive and negative cash flows in the period under review. Net money is the most important result of the financial activity of an enterprise, which largely determines the financial balance and the rate of increase in its market value.

The main goal of developing a plan for the receipt and expenditure of funds is to forecast in time the gross and net cash flows of the enterprise in terms of certain types of activities and ensure the constant solvency of the enterprise at all stages of the planning period.

The DDS plan is developed for the coming year by months to ensure that seasonal fluctuations in the company's cash flows are taken into account. The plan for the receipt and expenditure of funds is developed at the enterprise in the following sequence.

At the first stage, the receipt and expenditure of funds for the operating activities of the enterprise is predicted, since a number of effective indicators of this plan serve as the initial prerequisite for the development of its other components.

At the second stage, the planned indicators of the cash flows of investment activities (taking into account the cash flow from operating activities) are developed.

At the third stage, the cash flows of the financial activities of the enterprise are calculated, which is designed to provide sources of external financing for operating and investment activities in the planning period.

At stage IV, gross and net cash flows are predicted, as well as the dynamics of cash balances for the enterprise as a whole.

First step

Forecasting the receipt and use of cash from the operating activities of the enterprise is carried out in two ways:

· Based on the planned sales volume (direct method);

· Based on the planned target amount of net profit (indirect method);

When planning cash flows from operating activities, the influence of such indicators as "growth in current liabilities", taken into account in cash inflows, and "growth in current assets", taken into account in costs, is taken into account.

The need to calculate indicators of growth in current assets and growth in current liabilities in financial planning is due to the fact that when developing a cash flow plan, these indicators are considered, respectively, as spending money on creating stocks of raw materials in conjunction with the volume of sales (growth in current assets) and as additional sources financial resources in the form of accounts payable (an increase in current liabilities).

The calculation of the planned amount of net cash flow is carried out according to the following formula:

NPP pl \u003d PDS pl - RDS pl,

NPP pl is the planned amount of net cash flow in the period under review;

PDS pl - the planned amount of cash receipts from the sale of products;

RDS pl - the planned amount of spending the enterprise's funds.

Second phase

Forecasting the receipt and use of funds for the investment activities of the enterprise, the basis for the calculation are:

1. The program of real investment, characterizing the volume of investment of funds in terms of individual ongoing or planned investment projects.

2. A portfolio of long-term financial investments projected for formation.

3. The estimated amount of cash receipts from the sale of fixed assets, intangible assets. This calculation should be based on a plan for their renewal.

4. Planned size of investment profit in the form of dividends and interest receivable.

The calculations are summarized within the framework of the positions provided for by the standard for the statement of the flow of funds of the enterprise for investment activities.

Stage three

Forecasting the receipt and use of funds for the financial activities of an enterprise is carried out on the basis of the firm's need for external financing, determined for its individual elements. These calculations are based on:

1. The planned volume of the issue of own shares or the attraction of additional share capital. The cash flow plan includes only that part of the additional share issue that can be realized in the coming period.

2. The projected volume of attraction of long-term and short-term loans and borrowings.

3. The amount of the expected receipt of funds in the order of gratuitous targeted financing. These indicators are included in the DDS plan based on the approved state budgets or the corresponding budgets of other bodies.

4. Amounts of forthcoming payments in the planned period of the principal debt on loans and borrowings. The calculation of these indicators is carried out on the basis of specific loan agreements with banks and other lenders.

5. Estimated volume of dividend payments to shareholders. This calculation is based on the planned amount of the company's net profit and its dividend policy.

The indicators of the developed plan for the receipt and expenditure of funds serve as the basis for operational planning of various types of cash flows of the enterprise. The formats of the DDS plan can be different, but in all cases the indicators of the DDS plan are mutually related to the form of the D&R plan, the capital investment plan and the credit plan.

Since in practice most indicators are difficult to predict with sufficient accuracy, in practice this method of planning cash flows is simplified.

1. Determine the most important indicators that will be set in the VAT plan as targets (the size of the minimum and maximum final balances by months).

2. Establish three types of source of funds:

· From transactions (with the allocation of prepayment, sales for cash, receipts for products shipped earlier);

· External financing (loans and investments);

· Other sources (advances, proceeds from participation in activities other than the main activity).

3. To predict the receipt and expenditure of funds for the operating activities of the enterprise, since a number of effective indicators of this plan serves as the initial prerequisite for the development of its other components.

4. Detail items of sources of funds of each type, highlighting the most important items (breakdown of receipts

2. Characteristics of annual financial plans

The system of current financial planning of an enterprise's activities is based on the development of a financial strategy and financial policy for individual aspects of financial activities and a long-term financial plan. Hence, the current financial planning is implementation.

The result of the current financial planning is the development of three main documents:

1. profit and loss plan;

2. plan of cash flow;

3. the planned balance.

All three planning documents are based on the same initial data, correspond with each other and are developed in a certain sequence.

Current financial planning documents are developed for a period of one year with a breakdown by quarters.

The initial data for the development of annual financial plans are:

· The financial strategy of the enterprise and target strategic standards for the main areas of financial activity for the coming period;

· Results of financial analysis for the previous period;

· Planned volumes of production and sales of products and other economic indicators of operational production and economic activity;

· A system of norms and standards for the costs of individual resources developed at the enterprise;

· The current system of taxation;

· Applied methods of calculation of depreciation charges;

· Average interest rates in the financial market.

The development of financial plans in real life is preceded by a lot of analytical work, which is associated with the determination of the strategic parameters of the firm's activities, with voluminous marketing research, with the planning of the production program, production costs, etc.

In market conditions, the first indicator from which to start planning is the volume of sales (volume of products sold).

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