Management of income and expenses of LLC "ART-Studio "Impuls"
Students Name: Babukhin Anton Oleksandrovych
Qualification Level: master (ESP)
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2023-2024 н.р.
Language of Defence: ukrainian
Abstract: The master’s qualification thesis on "Revenue and Expense Management of LLC "ART-Studio "Impulse"" consists of three sections, namely, theoretical-analytical, research-prognostic, and recommendation. In the modern business environment, effective management of revenues and expenses is a key factor in ensuring financial well-being and sustainable development of the enterprise. The ability to timely identify opportunities for revenue growth and ways to optimize expenses becomes strategically important in ensuring competitiveness and profitability of the business entity. This issue is particularly relevant for printing companies, whose activities are largely dependent on fluctuations in resource prices and demand for products. In the theoretical-analytical part, the essence of revenues and expenses of enterprises was considered, and interpretations of scholars regarding the essence of revenues and expenses of enterprises in general were presented. In the analytical part of the first section, a financial analysis of the enterprise was conducted, as well as a general analysis of its revenues and expenses, and calculations of corresponding coefficients were made. Overall, the balance currency (total assets/capital) of the enterprise demonstrated a stable growth trend during 2021-2023. In 2022, it increased by 1762 thousand UAH or 22.51% compared to 2021. In 2023, the growth continued - the balance increased by another 1179 thousand UAH, or by 12.3% compared to the previous period. The sources of funding for the growth of the company’s assets included both equity and borrowed funds. Equity increased by 7.15% in 2022 and by 12.01% in 2023 primarily through reinvestment of undistributed profits. At the same time, borrowed financial resources, both long-term and current liabilities, also increased. Total liabilities grew by 38.73% in 2022 and by 14.39% in 2023. The analysis showed that the company expanded its business activities significantly through profit reinvestment. However, the dividend payout policy and the lack of growth in statutory capital cast doubt on the long-term development potential of the firm solely relying on internal sources of financing. To maintain a favorable capital structure, it is advisable to capitalize a portion of the profit. Overall, the analysis of balance sheet liabilities revealed an increasing reliance of the firm on borrowed sources of financing. Without prospects for increasing equity through profit capitalization, such a trend may negatively impact the financial stability of the company in the long term. A detailed analysis of revenues and expenses revealed that factors hindering the efficiency and profitability of the company’s operating activities include decreased sales profitability due to relatively slow revenue growth compared to sales expenses, excessive weight of non-production expenses, especially in sales and marketing expenses, in the firm’s expense structure. The research-prognostic part included a SWOT analysis of the company’s activities, which allowed identifying strengths and weaknesses, opportunities, and threats. Additionally, the impact of factors on the financial condition of the company was modeled, and forecasts for net income and cost price for future periods were made. According to the SWOT analysis, the comprehensive implementation of the proposed measures will enable the company to maximize the utilization of existing competitive advantages, capitalize on growth and diversification opportunities, and reduce vulnerability to external environmental factors and company weaknesses. In the recommendation section, the feasibility of purchasing new printing equipment to increase revenue and reduce expenses for LLC "ARTStudio "Impuls"" was substantiated. The cost of this investment project was calculated, financing sources identified, payback period and net present value of the project determined. Specifically, the payback period of the project was approximately 3 years and 5 months, and the net present value over 4 years was positive - 757.5 thousand UAH. Thus, the project to acquire new printing equipment for LLC "ARTStudio "Impuls"" will pay off in approximately 3 years and 6 months. This will provide the company with additional income and allow for expanding the range of services and increasing productivity. It was also recommended to refinance the existing bank loan of the company to reduce interest rates and payments. Refinancing 20% of the company’s short-term loans at Kredobank at 18% per annum for 3 years will save 91,644 UAH on interest payments. This will significantly reduce debt servicing costs and improve the financial position of the company. Overall, the implementation of the recommended measures will allow LLC "ARTStudio "Impuls"" to increase the efficiency of income and expense management, expand activities, and improve financial results. Moreover, the project to purchase new printing equipment is economically justified and will pay off within 3-4 years. The aim of the study is a comprehensive examination of theoretical and practical aspects of income and expense management of the enterprise and the development of recommendations for its improvement using the example of LLC "ARTStudio "Impuls"". The object of the study is the process of managing the formation and use of income and expenditure at LLC "ARTStudio "Impuls"". The subject covers theoretical-methodological and practical principles of improving the income and expense management system of a printing company. Research methods include the dialectical method of cognition, systemic approach, financial-economic analysis, statistical methods, coefficient analysis, SWOT analysis, forecasting methods, and investment project evaluation methods. Research objectives: to reveal the economic essence of revenues and expenses of economic entities; to conduct financial-economic analysis of income, expenses, and profitability of the enterprise; to identify reserves for increasing revenues and optimizing expenses; to conduct SWOT analysis of financial and economic activities; to model the impact of currency risks and forecast income and expenses for the future; to justify an investment project for the purchase of new equipment to expand production capacity; to evaluate the project’s effectiveness based on payback criteria and net present value. Keywords: Revenue management, expense management, financial controlling strategy. 1. Byba, V. V., Pinchuk, N. M., Korunskyi, V. V. Efficient cost management in organizational management. 2024. Investments: Practice and Experience, No. 8, pp. 141-145. 2. Kurylo, O. B., Skoropad, I. S., Abdullin, S. T., Babukhin, A. O. 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