Internal own sources of financial resources of the enterprise.
2. External own sources of financial resources of the enterprise
Enterprises can raise their own funds by increasing their authorized capital through additional contributions from founders or issuing new shares. Opportunities and methods for attracting additional equity capital significantly depend on the legal form of business organization.
Joint-stock companies that are in need of investment can carry out additional placement of shares by open or closed subscription (among a limited circle of investors). In general, the initial placement of shares of an enterprise by open subscription is a procedure for their sale on an organized market in order to attract capital from a wide range of investors. According to the Federal Law “On the Securities Market,” public offering means “the placement of securities through open subscription, including the placement of securities at auctions of stock exchanges and/or other organizers of trading on the securities market.” Thus, the initial placement of shares of an enterprise by open subscription of a Russian company is the placement of an additional issue of shares by open subscription on stock exchanges, provided that the shares were not traded on the market before the placement. Moreover, in accordance with the directives of the Federal Financial Markets Service, at least 30% of the total volume of the initial public offering of shares by open subscription must be placed on the domestic market. In general, the preparation and conduct of an initial public offering of shares involves four stages. At the first (preparatory) stage, the enterprise must develop a placement strategy, select a financial consultant, switch to international financial reporting standards, conduct an audit of financial statements and internal control systems for 3-4 years preceding the initial public offering, carry out the necessary structural changes, create a public credit history, for example, by issuing bonds.
At the second stage, the main parameters of the upcoming initial public offering are determined, legal and financial due diligence procedures are carried out, as well as an independent assessment of the business.
At the third stage, the prospectus is prepared and registered, a decision is made on the issue, information about the initial public offering of shares is communicated to potential investors, and the final offering price is determined. At the final stage, the placement itself takes place, i.e., the company is admitted to the stock exchange and subscribed for shares.
Financing through the issue of ordinary shares has the following advantages: this source does not imply mandatory payments, the decision on dividends is made by the board of directors and approved by the general meeting of shareholders; shares do not have a fixed maturity date - they are permanent capital that cannot be “returned” or redeemed; conducting an initial public offering of shares significantly increases the status of the enterprise as a borrower (the credit rating increases; according to experts, the cost of attracting loans and debt servicing is reduced by 2-3% per annum); shares can also serve as collateral to secure debt; circulation of company shares on stock exchanges provides owners with more flexible opportunities to exit the business; the capitalization of the enterprise increases, a market assessment of its value is formed, and more favorable conditions are provided for attracting strategic investors; the issue of shares creates a positive image of the enterprise in the business community, including the international one, etc. The general disadvantages of financing through the issue of ordinary shares include: granting the right to participate in the profits and management of the company to a larger number of owners; the possibility of loss of control over the enterprise; higher cost of capital raised compared to other sources; the complexity of organizing and conducting the issue, significant costs for its preparation; an additional issue may be viewed by investors as a negative signal and lead to a fall in prices in the short term. It should be noted that the manifestation of the listed shortcomings in the Russian Federation has its own specifics. In addition to them, the widespread practice of conducting initial public offerings of shares by Russian enterprises is hampered by both external factors (underdevelopment of the stock market, peculiarities of legal regulation, availability of other sources of financing) and internal restrictions (unpreparedness of most enterprises for initial public offerings, wary attitude of owners towards possible costs of "transparency", fear of loss of control, etc.). Let's look at them in more detail.
A significant problem caused by the peculiarities of legal regulation is the time gap between the date of the decision to place shares and the beginning of their circulation on the secondary market.
Another significant limitation is the requirement to ensure “transparency”. Disclosure of information when conducting an initial public offering is required to a much greater extent than when obtaining various types of loans. At the same time, due to the established legal climate and established business practices, many Russian enterprises react very sensitively to the requirement of “transparency.” Disclosure of information about ultimate owners, tax reduction schemes, etc. can make a company an easy target for takeover using judicial, law enforcement and fiscal authorities.
Many Russian enterprises are not ready to carry out an initial public offering of shares of the enterprise. Business transparency in most cases is a consequence of having a clear development strategy (an economically justified business plan) and a corresponding management structure that allows you to achieve your goals, manage growth, control risks and use capital effectively. Only a few domestic enterprises meet these criteria.
Another important external source of financial resources of the enterprise is budgetary allocations.
Budgetary allocations can be provided to enterprises, usually state-owned, in the following forms: budget investments, government subsidies, government subsidies. Budget investments are the allocation of funds from state or local budgets for the development of production, primarily in the form of capital investments. They are sent to priority sectors and projects that determine the development of the country’s economy as a whole. State subsidies are the allocation of funds from the budget to cover the losses of an enterprise, as a rule, in the case when loss is a consequence of a certain state policy, for example, pricing. Government subsidies are the allocation of funds from the budget to business entities to solve certain tasks within the framework of various types of government programs. Receipts from state trust funds are identical in content to budget allocations. They come in the form of government investments and subsidies. These provided resources are of a targeted nature, which emerges from the essence of these funds. Loan financial resources include: 1) bank loan. Its necessity is determined by the nature of the circulation of fixed and working capital. For example, an enterprise has produced some finished products, that is, a certain part of its production reserves has passed into commodity form, but before selling these products, that is, acquiring them in monetary form, the enterprise has a need to invest in the purchase of raw materials, materials, means an advance into a new cycle. There is a need for loan funds that are attracted for a certain time and on a rotating basis. The same is observed if the enterprise needs additional funds to increase production volume, as well as to overcome temporary disruptions in the production process and sales of products. 2) a budget loan, which operates on the same principles as a bank loan. 3) commercial loan is the purchase of goods or services with deferred payment. Such an agreement is formalized by a special promissory note - a commercial bill. Lending, unlike budgetary allocations, is carried out in compliance with the principles of repayment, payment, and security. The transition to market conditions for farming, the introduction of commercial principles into the activities of enterprises, and the privatization of state-owned enterprises require new approaches before the formation of financial resources. Currently, an important place in the sources of financial resources belongs to shares and other contributions of individuals and legal entities, members of the workforce. At the same time, the volumes of financial resources that come from industry structures and the volumes of budget subsidies from government bodies are significantly reduced. The importance of profits, depreciation charges and loan funds in the formation of financial resources of enterprises is increasing.
3. Problems of forming an enterprise’s own sources in a crisis
An economic crisis is a normal phenomenon of a market economy, in which only the strongest enterprises survive and gain immunity and experience. The task of an enterprise during a crisis is to adapt to the conditions of a “changed surrounding economic or market environment.” Any situation on the market that leads to a forced reduction in production volumes, bankruptcy, an increase in accounts receivable, urgent sale of assets and repurposing of production falls under the definition of a “crisis”.
During a crisis, problems always arise in the life of an enterprise related to a lack of financial resources, and it becomes vulnerable in all areas of its activities.
During a crisis, the financial result of many enterprises is a loss. This suggests that the enterprise not only lacks the profit necessary for accumulating funds, paying taxes to the budget, and growing the enterprise’s property, but also that the enterprise’s expenses exceed income. Often, enterprises cannot cope with this problem, as a result of which they go bankrupt.
The problem of the crisis also concerns such own sources as depreciation charges. They represent the monetary expression of the value of fixed production assets. Depreciation charges are included in production costs and must be returned to the company’s bank account as part of the proceeds from sales of products. But many enterprises operating during a crisis receive revenue that is not able to cover all its expenses. Therefore, depreciation deductions are often not returned to the company’s current account. As a result, internal sources of financing for simple and expanded production are reduced, and the enterprise does not function fully.
In a crisis situation, the situation of an enterprise can be improved with the help of additional contributions to the authorized capital of the enterprise. These contributions are not recognized as corporate profits and are not subject to value added tax. The problem of receiving additional contributions to the authorized capital may lie in the fact that the founders may have less funds to use to increase the authorized capital of the enterprise.
The financial stability of an enterprise largely depends on the state of the country’s economy as a whole. During the crisis, the state reduced the amount of funds allocated to support enterprises. These funds were the enterprise’s own sources (budgetary allocations, etc.). A reduction in these revenues affects the financial condition of the enterprise and its functioning as a whole.
Conclusion
The functioning of an enterprise is impossible if it lacks financial resources. As already mentioned, the first and most important condition for the functioning of an enterprise is the presence of its own sources of financial resources. The need for its own sources of financial resources lies in the fact that if the enterprise is dominated by borrowed funds, it simply will not be able to cope with the obligations to repay borrowed funds and will not function fully.
This abstract examined the composition of the enterprise's own sources and reflected the problems of the formation and use of some of them. Based on these indicators, one can judge the financial condition of the enterprise.
In order for an enterprise to function normally during a crisis and its financial result to be a profit and not a loss, it is necessary to conduct a financial analysis of the state of the enterprise. Not only the enterprise itself, but also creditors, suppliers, and buyers are interested in this analysis.
Financial resources are a set of own cash income and receipts from outside (raised and borrowed funds) at the disposal of a business entity and intended to fulfill the financial obligations of the enterprise, finance current costs associated with the expansion of production and economic stimulation.
Financial resources are used by enterprises in the process of production and investment activities. The main forms of their existence are fixed and working capital of the enterprise. Essentially, financial resources are presented as assets on the balance sheet; in other words, they are very diverse and can be classified according to various criteria. In particular, these are long-term tangible, intangible and financial assets, inventories, accounts receivable and cash and cash equivalents. We are not talking about their material representation, but about the advisability of investing money in certain assets and their ratio. Financial resources are in constant motion and are in cash form only in the form of cash balances in a current account in a commercial bank and in the cash register of an enterprise. Based on the sources of education, financial resources are divided into own (internal) and attracted on different terms (external), mobilized in the financial market and received in the order of redistribution. Sources of financial resources: - profit; - depreciation; - accounts payable; - funds received from the sale of securities; - contributions of participants in a joint venture; - loans and cash loans, etc.
The size of financial resources of enterprises depends on the volume of production, its efficiency and determines the possibilities of their use for: - making the necessary capital investments; - advances to current investments (in cost); - increase in working capital; - fulfillment of financial obligations; - investing in securities; - meeting social needs, charity and sponsorship.
If external investors invest money. funds as entrepreneurial capital, then the result of such an investment is the formation of attracted own financial resources. Part of the financial resources invested in production and generating income upon completion of turnover is capital. Based on the form of investment, a distinction is made between entrepreneurial capital invested in various enterprises through simple or portfolio investments with the aim of making a profit, and credit (loan) capital - monetary capital provided on credit on the terms of repayment and payment.
Own financial resources: - authorized capital; - profit from financial activities; - depreciation charges (for the reproduction of fixed assets); - additional capital; - reserve fund; - balances of reserve and insurance funds; - funds equivalent to own - stable liabilities (debt of the enterprise to suppliers, employees, budget for taxes, mandatory payments to extra-budgetary funds).
Profit. Not all profit remains at the disposal of the enterprise; part of it goes to the budget in the form of taxes and other payments. The profit remaining at the disposal of the enterprise is distributed by decision of the governing bodies for the purposes of accumulation and consumption.
Profit allocated for accumulation is used for the development of production and contributes to the growth of the enterprise's property. Profits allocated for consumption are used to solve social problems.
Depreciation is the process of transferring the value of fixed assets to a manufactured product as it wears out. Depreciation charges are an element of an enterprise’s costs for the production of products (performance of work, provision of services). Depreciation charges are the monetary expression of the cost of depreciation of fixed assets and intangible assets. They have a dual character, because are included in the cost of production and, as part of the proceeds from the sale of products, are transferred to the current account of the enterprise, becoming an internal source of financing for both simple and expanded production.
Stable liabilities are liabilities that do not belong to the enterprise, but are constantly in circulation and are used legally. They are a source of covering their own working capital in the amount of the increase, i.e. the difference between their values at the end and beginning of the period. The amount of sustainable liabilities may vary. Stable liabilities include: - minimum carryover debt for wages, contributions to extra-budgetary social funds; - minimum debt for reserves to cover upcoming expenses and payments; - debt to customers for advances and partial payment (prepayment) for products; - debt to the budget for certain types taxes that are calculated before the due date.
Borrowed financial resources: - bank loans; - budget loan; - trade loan; - commercial credit; - financial leasing; - funds from industry centralized reserves; - accounts payable, constantly in circulation.
Attracted financial resources: - funds received from the issue of securities; - from equity participation in the activities of other enterprises; - insurance compensation in the event of an insured event; - shares and other contributions of members of the labor collective of individuals and legal entities; - charitable and sponsorship assistance, etc.
Enterprises can receive funds for the implementation of targeted activities from higher organizations, individuals, as well as from budgets. Budget assistance can be provided in the form of subventions and subsidies. Subvention is budget funds provided to an enterprise on a free and non-refundable basis for the implementation of certain targeted expenses. Subsidy – budget funds provided to an enterprise on the basis of shared financing of targeted expenses; these funds are part of the enterprise’s own capital.
More on topic 63. Internal and external sources of formation of an enterprise’s financial resources:
- 2. Composition of equity capital and own financial resources of the enterprise.
- 1.9.1. Economic essence, classification and principles of formation of financial capital of an enterprise
- 2. Financial resources of the company: concept, purpose, role.
- 17. Features of the formation of financial resources at the household level
- Current problems of effective use of financial resources of enterprises
- 43. Anti-crisis financial management, essence and classification of financial crises of an enterprise
- Financial mechanism of investment activities of enterprises.
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If there is a lack of its own financial resources, the enterprise can use borrowed and attracted financial resources.
Borrowed sources of financial resources include:
a) loans from financial institutions;
b) budget loans;
c) commercial loans;
d) accounts payable, constantly in circulation, and others.
The attracted sources of financial resources include:
1) means of equity participation in current and investment activities;
2) funds from the issue of securities;
3) shares and other contributions of members of the labor collective, legal entities and individuals;
4) insurance compensation;
5) receipt of payments for franchising, rent, sales.
Borrowed funds include loans from commercial banks and other credit organizations, and other loans. Raised financial resources include funds raised by issuing shares, budgetary allocations and funds from extra-budgetary funds, as well as funds from other enterprises and organizations raised for equity participation and for other purposes.
All liabilities of the enterprise are formed from borrowed funds: internal (internal accounts payable, deferred tax payments, etc.), and external (bank and commercial loans, issue of own bonds, financial leasing). Depending on the urgency of repayment, they are usually divided into long-term and short-term liabilities.
Based on the duration of use, the capital of an enterprise is divided into constant and variable.
Constant capital is formed from the enterprise's own capital and its long-term borrowed funds.
One of the central issues of financial management is capital price management, which is based on assessing the need for resources and analyzing the price of individual financial resources, which are determined by the enterprise’s own interests and the laws of supply and demand in capital markets.
When considering the issue of the price of capital, the sources of its formation are usually divided into internal and external.
Internal - created in the course of the enterprise’s activities, the payment for the use of which may be lost average market income on retained earnings, reserve and insurance capital, etc.
External - resources are purchased on financial markets and have their own terms of attraction, term and price. The price of external resources can be: interest paid for using bank loans; fines and penalties on commercial loans; interest on issued bonds; discount on bills; dividend paid to shareholders.
The total amount of funds that must be paid for the use of a certain volume of financial resources, expressed as a percentage of this volume, is called the price of capital.
The concept of the price of capital is one of the basic ones in the theory of enterprise management. It is not limited to calculating the interest that must be paid to the owners of financial resources, but also characterizes the profitability of invested capital that the enterprise must ensure in order not to reduce its market value.
To cover the needs for fixed and working capital, in some cases it becomes necessary for an enterprise to attract borrowed capital. Such a need may arise as a result of deviations in the normal circulation of funds for reasons beyond the control of the enterprise:
Non-obligatory partners, emergency circumstances, etc.;
During the reconstruction and technical re-equipment of production;
Due to lack of sufficient start-up capital;
For other reasons.
Borrowed capital by period of use is divided into long-term and short-term. Long-term liabilities include capital with a maturity of more than one year, and up to one year are classified as short-term liabilities. Elements of fixed capital, as well as the most stable part of working capital (insurance stocks, part of accounts receivable) must be financed by long-term capital. The rest of the current assets, the value of which depends on the flow of goods, is financed by short-term capital.
The main forms of long-term liabilities are long-term bank loans and long-term borrowed funds (debt on a tax credit; debt on issued bonds; debt on financial assistance provided on a repayable basis, etc.), the repayment period of which has not yet come or has been repaid within the stipulated time. term.
Short-term financial liabilities include short-term bank loans and borrowed funds, various forms of accounts payable of an enterprise (for goods, works and services; for bills issued; for advances received; for settlements with the budget and extra-budgetary funds; for wages; with subsidiaries; with other creditors) and other short-term liabilities.
Borrowed capital is characterized by the following positive features:
1. Sufficiently wide opportunities for attraction, especially with a high credit rating of the enterprise, the presence of collateral or a guarantor’s guarantee;
2. Ensuring the growth of the financial potential of the enterprise if it is necessary to significantly expand its assets and increase the growth rate of the volume of its economic activities;
3. Lower cost in comparison with equity capital due to the provision of a “tax shield” effect (withdrawal of costs for its maintenance from the tax base when paying income tax);
4. The ability to generate an increase in financial profitability (return on equity ratio).
At the same time, the use of borrowed capital has the following disadvantages:
1. The use of this capital generates the most dangerous financial risks in the economic activity of the enterprise. The level of these risks increases in proportion to the increase in the proportion of use of borrowed capital;
2. Assets formed from borrowed capital generate a lower rate of profit, which is reduced by the amount of loan interest paid in all its forms;
3. High dependence of the cost of borrowed capital on fluctuations in financial market conditions. In a number of cases, when the average loan interest rate in the market decreases, the use of previously received loans (especially on a long-term basis) becomes unprofitable for the enterprise due to the availability of cheaper alternative sources of credit resources;
4. The complexity of the attraction procedure, since the provision of credit funds depends on the decisions of other business entities, requires in some cases appropriate third-party guarantees or collateral.
Borrowed resources are not the property of a given enterprise and their use is fraught with loss of independence for it. Borrowed funds are provided on terms of urgency, payment, and repayment, which ultimately leads to their faster turnover compared to own resources. Borrowed funds include various types of loans attracted from other parts of the credit system (banks, investment institutions, the state, enterprises, households).
Attracted resources are funds that do not belong to the enterprise, but are temporarily in its circulation. These funds, before sanctions (fines or other obligations to the owners) arise, can be used at the discretion of the business entity. These are, first of all, stable liabilities - arrears of wages to employees, debt to the budget and extra-budgetary funds, funds from creditors received in the form of prepayments, etc.
The relationship between these elements of financial resources determines the financial stability of a business entity.
The next sign of the allocation of elements of financial resources is the urgency of use. As a rule, resources are classified into: short-term; mid-term; long-term.
Short-term resources - their validity period is up to a year. Designed to finance the current activities of the enterprise: the formation of working capital, short-term financial investments, settlements with debtors.
Medium-term resources - from one to 3 years - are used to replace individual elements of fixed assets, their reconstruction and re-equipment. In this case, as a rule, the goal is not to change technology or completely replace equipment.
Long-term resources - are attracted, as a rule, for a period of 3 to 5 years and are used to finance fixed assets, long-term financial investments, and risk financing. In our opinion, the minimum time limit (3-5 years) of these funds is determined by the validity period of fixed assets. This is how long, on average, machines and equipment are used in economically developed countries. Beyond this period, their use is fraught with an overestimation of the cost of manufactured products (due to moral and physical wear and tear). Since the lower time limit for the use of these resources is determined by the functioning of machinery and equipment, it is logical to allocate another group of resources here - for financing objects beyond long-term purposes, i.e. buildings, structures. The time limit can be 10-15 years or more. It is for these terms that it is possible to obtain a mortgage loan.
7. Own financial resources of the enterprise. Composition and conditions of formation.
It is worth highlighting the concept of “capital” - part of the financial resources invested in production and generating income upon completion of the turnover.
Major share in own financial resources constitutes profit remaining at the disposal of the organization (enterprise) and distributed by decision of the governing bodies. Depending on the financial policy of the organization (enterprise), the profit remaining at its disposal can be used as follows:
Aimed at consumption in full;
Fully invested in other projects not related to the organization’s activities;
Reinvested in the development of the organization in full;
Distributed in the first three directions.
The second most important source of own financial resources are depreciation charges - monetary expression of the cost of depreciation of fixed production assets and intangible assets. They have a dual nature, since they are included in the costs of production and then, as part of the proceeds from the sale of products, go to the current account of the enterprise, becoming an internal source of financing for both simple and expanded reproduction. Accumulated depreciation charges form a depreciation fund intended for the reproduction of worn-out fixed assets.
Not all profits remain at the disposal of the organization (enterprise); part of it in the form of taxes and other obligatory payments goes to the budget system. The profit remaining at the disposal of the organization (enterprise) is distributed by decision of the governing bodies for the purposes of accumulation and consumption and reserves. Profit allocated for accumulation is used for the development of production and contributes to the growth of the enterprise’s property. Profits allocated for consumption are used to solve social problems.
8. External sources of financial resources.
Financial resources of the organization (enterprise) - This is the totality of one’s own cash income in cash and non-cash form and income from outside (attracted and borrowed), accumulated by an organization (enterprise) and intended to fulfill financial obligations, finance current costs and costs associated with the development of production.
Based on the sources of education, financial resources are divided into own (internal) and attracted on different terms (external), mobilized in the financial market and received in the order of redistribution.
Attracted, or external, sources The formation of financial resources can be divided into own, borrowed, received through redistribution and budgetary allocations. This division is determined by the form of capital investment. There are two options for raising funds in the capital market: equity and debt financing. With equity financing, the company issues and places its shares on the stock market. The second option involves the issue and placement of bonds (terms securities), i.e. provision of capital on the basis of a bond issue. If external investors invest money as entrepreneurial capital, then the result of such an investment is the formation of attracted own financial resources.
Entrepreneurial capital represents capital invested in the authorized capital of another organization (enterprise) for the purpose of making a profit or participating in the management of the organization (enterprise).
Loan capital transferred to an organization (enterprise) for temporary use on the terms of payment and repayment in the form of bank loans issued for different periods, funds of other organizations (enterprises) in the form of bills of exchange, bond issues.
Funds raised in the financial market include funds from the sale of own shares and bonds, as well as other types of securities.
To funds arriving in order redistribution, include insurance compensation for incurred risks, financial resources coming from concerns, associations, parent companies, dividends and interest on securities of other issuers, budget subsidies.
Budget allocations can be used both on a non-refundable and returnable basis. As a rule, they are allocated to finance government orders, individual investment programs, or as short-term government support for organizations (enterprises) whose products are of national importance.
Financial resources are used by an organization (enterprise) in the process of production and investment activities. They are in constant motion and are in monetary form only in the form of cash balances in a current account in a commercial bank and in the cash desk of an organization (enterprise).
The enterprise's sources of financing are its own and equivalent funds; funds mobilized in the financial market; funds received through redistribution (Fig. 6).
The funds mobilized in the financial market are: credit investments, income from the sale of securities, government subsidies.
Credit investments are borrowed funds, including bank loans, financial loans from various investors, debts to creditors, and are external sources of financing activities.
Borrowed funds on a long-term basis (more than a year) are usually raised for the acquisition of fixed assets, and on a short-term basis (up to a year) for the purchase of goods, resources and replenishment of working capital.
Rice. 6. Sources of formation of the enterprise’s financial resources
The sale of one's own securities, being a means mobilized in the financial market, allows one to attract the necessary investments to ensure the activities of the enterprise or its development.
State subsidies are provided to enterprises solving important social problems, which, for objective reasons, are not sufficiently compensated by income.
Own and equivalent funds consist of income and depreciation charges.
An enterprise's own funds and equivalent funds are financial resources owned by the enterprise. They are the basis for carrying out business activities and include income from the sale of products, fixed assets and financial transactions, as well as depreciation charges equivalent to them, which provide an increase in sustainable liabilities.
To replenish its own sources of financing, an enterprise can receive income from the sale of part of its fixed assets if they are not used or are used ineffectively.
Income from financial transactions can be obtained from lending funds, from placing free funds on deposits, from exchange rate differences, from the purchase and sale of currency.
Depreciation is funds allocated to compensate for the depreciation of fixed assets by including part of their cost in the costs of production, therefore, in the price of the product. Depreciation deductions are carried out in accordance with the statutory service life of fixed assets and deduction rates. They remain at the disposal of the enterprise. The purpose of depreciation is to ensure simple reproduction.
Sustainable liabilities occupy a special place among the sources of financing the activities of an enterprise. From the standpoint of obligations, sustainable liabilities are external sources, and from the standpoint of the possibility of management influencing the order of their payment, they are classified as internal sources, therefore they are identified as a separate element of financing the activities of the enterprise.
The increase in sustainable liabilities is formed through installment payment of obligations. This includes: advances from buyers and customers; arrears of wages to employees of the enterprise and social insurance authorities; reserves for future expenses and payments; temporarily available funds from special funds; increase in depreciation charges; accounts payable (your debts for resources already used), rent.
For example, wages are included in the price of each unit of products sold, but are paid to employees only once or twice a month, and in the period between payments are used by the enterprise for its own purposes. The same thing happens with taxes and other mandatory payments taken into account in the price of the product, but paid only by a certain date.
Funds received through redistribution include: insurance compensation funds, as well as dividends and interest on securities of other issuers.
Insurance compensation funds appear at the enterprise only if there is insurance for various risks: transactions, emergencies, etc., as a result of compensation by insurance organizations for the damage suffered by the enterprise.
Dividends and interest on securities arise when an enterprise acquires shares and other securities of other issuers.
The choice of sources of financing activities depends on numerous factors: sales volume, the nature of markets, the scope of activity, the specifics of products, the nature of government regulation and taxation, connections with financial markets, etc.
When managing finances, it is necessary to remember that an increase in depreciation charges, due to an increase in the cost of fixed assets, or the choice of a depreciation method, leads, other things being equal, to a decrease in profitability. However, if at the same time the enterprise remains profitable, then the total amount of depreciation funds and net profit remaining at its disposal increases by a greater amount than the profit decreases.