Income and expense management at LLC "VISAZH-ZACHID"
Students Name: Buketa Oleksii Olehovych
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: In the theoretical part of the first chapter, the interpretation of the concepts of "income" and "expenses" in scientific literature and in the legal field was considered. The broadest definition of income is money or other assets received as a result of any activity and an increase in economic benefits in the form of an increase in assets or a decrease in liabilities, which leads to an increase in equity. The most common interpretation of expenses is that it is the amount incurred by the taxpayer in the form of currency, tangible or intangible business, these expenses lead to such forms of economic benefits, reducing the disposal of assets or increasing liabilities, as a result of which equity is reduced. In the analytical part of the section, a general financial analysis of "VISAZH-ZACHID" LLC was carried out and a detailed analysis of the company’s income and expenses was carried out, as well as considerable attention was paid to the ratio analysis. Based on the results of the analysis, it was determined that the balance sheet in 2019 was UAH 673,505 thousand, in 2020, compared to the previous year, the balance sheet decreased by UAH -25,150 thousand. (-3.73%) to UAH 648,355 thousand, in 2021, compared to the previous year, the balance sheet increased by UAH 323,978 thousand. (49.97%) to UAH 972,333 thousand. Own capital in 2019 amounted to UAH 521,606 thousand. (77.45% in the balance sheet), in 2020, compared to the previous year, equity decreased by UAH 143,470,000. (-27.51%) to UAH 378,136 thousand, and its share in the balance structure also decreased to 58.32%, in 2021, compared to the previous year, equity increased by UAH 118,232 thousand. (31.27%) to UAH 496,368 thousand, and its share in the balance structure decreased to 51.05%. The main income and expenses are net income and cost, respectively. According to the analysis, the net income from the sale of products in 2019 amounted to 726,989 thousand UAH. In 2020, compared to the previous year, the net income from the sale of products decreased by -18,422 thousand UAH. (-2.53%) to UAH 708,567 thousand, in 2021, compared to the previous year, the net income from product sales increased by UAH 129,277 thousand. (18.24%) to UAH 837,844 thousand. The cost of sales of products in 2019 was UAH 494,702 thousand, in 2020, compared to the previous year, the cost of sales of products slightly decreased by -2,241 thousand UAH. (-0.45%) to UAH 492,461 thousand, in 2021, compared to the previous year, the cost of goods sold increased slightly by UAH 3,034 thousand. (0.62%) to UAH 495,495 thousand. The net profit in 2019 amounted to 55,303 thousand UAH. In 2020, compared to the previous year, the net profit significantly decreased by -48,085 thousand UAH. (-86.95%) to UAH 7,218 thousand, in 2021, compared to the previous year, net profit significantly increased by UAH 111,039 thousand. (1538.36%) to UAH 118,257,000. After carrying out a ratio analysis, it was found that the company is generally liquid, financially stable, has good business activity and profitability. However, it is necessary to pay attention to cost management in the future. In the second part of the work, a SWOT analysis of the company’s activity was carried out, the factors influencing the profitability of assets were modeled, and the indicators, namely net income and cost price, were forecast. With the help of a SWOT analysis, the company’s strengths and weaknesses, as well as opportunities and threats for it, are given. The strategic program of financial and economic development of the enterprise is presented. After modeling the factors affecting the company’s profitability, it was found that the increase in the profitability of assets in 2020 was -0.0710, that is, it decreased by -0.0728 under the influence of the State of Emergency factor and increased by 0.0018 under the influence of the 1/A factor. In 2021 the growth of the indicator took place by 0.1105, which is caused by 0.1427 under the influence of the state of emergency factor and by -0.0322 under the influence of the 1/A factor. Therefore, the influence of the factors was oppositely directed, and the decisive influence on the profitability of assets was caused by the net profit. Making a forecast using the method of least squares, it was found that the net income is growing at a faster rate than the cost price, which is positive. Thus, the projected net income will be 898,063.32 thousand hryvnias, and the projected cost price will be 575,891.06 thousand hryvnias. Accordingly, under all other conditions, we receive a gross profit in the amount of UAH 322,172.26 thousand. Hence it was determined that the company’s financial results are increasing, which is positive. One of the opportunities for improvement is changing the company’s trading mark-up and managing overhead costs, which are also growing at a high rate. A number of recommendations are given in the recommendation section regarding the improvement of revenues and optimization of enterprise expenses. The first recommendation was the introduction of new equipment to control the coloring of plastic. We offer the purchase of new modules of "smart" equipment for the already existing plastic painting. The mentioned modules will make it possible to accurately control the temperature of painting plastic, accordingly to simulate a gas burner and will make it possible to accurately inject paint into nozzles to prevent leaks and excessive use of paint. According to the calculations, the investment project is economically profitable, and therefore the project for the purchase of new equipment must be implemented. This project will make it possible to increase the company’s income and reduce costs, and mainly improve the quality of products. The second recommendation was to refinance. Having carried out the specified operation, it was determined that the interest on the loan for the year will amount to UAH 1,706.33 thousand. According to the current loan, the company pays 1,850,000 hryvnias per year under the specified loan agreement. The object of the study is the activity of the enterprise. The purpose of the study is the management of income and expenses of "VISAZH-ZACHID" LLC Research goals: analysis of theoretical and practical approaches to the interpretation, analysis and management of income and expenses of business entities; general analysis of the financial condition of "VISAZH-ZACHID" LLC and detailed analysis of income and expenses of "VISAZH-ZACHID" LLC; determination of weaknesses and strengths of the enterprise; modeling of the impact on the profitability of a number of indicators; forecasting the main income and expenses; introduction of recommendations for improving income and expense management and calculation of the effect of the proposed recommendations. Key words: income of enterprises, expenses of enterprises. Bondarchuk M.K. Financial and credit regulation of innovative development of financial and industrial groups in the context of their anti-crisis activities / M.K. Bondarchuk, O.P. Voloshyn, O.Y. 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