Secured Loans -- A form of debt for money borrowed in which specific assets have been pledged to guarantee payment.

Money Market Credit divides on Commercial Paper and Bankers’ Acceptances

Commercial Paper An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates.

Commercial paper market is composed of the (1) dealer and (2) direct-placement markets.

Advantage: Cheaper than a short-term business loan from a commercial bank.

Dealers require a line of credit to ensure that the commercial paper is paid off.

Bankers’ Acceptances -- Short-term promissory trade notes for which a bank (by having “accepted” them) promises to pay the holder the face amount at maturity.

Factoring, or accounts receivables factoring is the selling of the business's accounts receivable to a factoring company. The factoring company (factor) pays the business a percentage of the value of the accounts receivable and deducts a fee for the cost of collections. Then the factor collects the receivables. One way to look at factoring is that a business is outsourcing its receivables collections process.

If a company needs to acquire cash quickly to maintain business operations, the company may sell off accounts receivable. By doing this, the company can gain an influx of cash to sustain through a financial crisis.

Task 1

Elements of circulating assets	Company 1	Company 2
Sum mln UAH	Structure, %	Sum mln UAH.	Structure, %
Industrial stocks	94,70	27,0	94,92	43,1
Work in progress	16,15	4,7	27,64	12,6
Expenses of the future periods	134,15	38,3	5,32	2,4
Finished goods	17,65	5,0	30,02	13,7
The other	87,35	25,0	62,1	28,2
Total

According to results that we get, we can say that first company is more material than another one. But first company has to invest more in Expenses of the future periods. it is Likely the cost of training and development of production, which are caused by the specifics of the production process. Also we can suggest that second company belongs to those companies that manufacture products with a higher added value.

Task 2

Calculate the production budget based on the following data.

On the basis of this information we can build up the sales budget. Assume that the ending inventory in each quarter is 15 % of next quarter's sales and that ending inventory for the fourth quarter is 200 units.

Sales budget

	Quarter
					TOTAL
Expected sales in units
Unit sales (price UAH)

Production budget

	Quarter
					TOTAL
Planned sales Desired ending inventory	2000 100	1000 110	1100 100	1000 200
Total needs less beginning inventory	2100 200	1110 100	1200 110	1200 100
Units to be produced

Дата добавления: 2015-11-14