Audit and economical analysis

Table 71

Description of periodicity of assets turnover

Activity cycle	Cash	Cost of purchase of goods	Value of commodity resale	Profit
1^st period	Cash loans 50 million sum	Acquisition of goods 50 million sum	Cash inflow 75 million sum	+ 25 mln sum
2^nd period	Cash loans 75 million sum	Acquisition of goods 75 million sum	Cash inflow 105 million sum	+ 30 mln sum
3^rd period	Cash loans 105 million sum	Acquisition of goods 105 million sum	Cash inflow 130 million sum	+25 mln sum
4^th period	Cash loans 130 million sum	...	...	...
5^th perioad	...	...	...	...
...	...	...	...	...

In retail trade, goods are purchased for cash. Therefore, the share of accounts receivable in total assets is not high. In the wholesale trade, the sum of liabilities in the aggregate assets is slightly higher at the expense of lending goods. That is why analysts should first of all pay attention to the quality and duration of commitments. Also, one of the important factors affecting business volume in commercial enterprises should be emphasized in the analysis of seasonal variables.

Service Provider. The distinctive feature of the service companies is that they do not create a new value (product).

The services are not stored in the warehouse, and the share of reserves in total assets is not high. Intellectual capital plays a key role in companies. The main focus of these companies' analysis is to focus on the effectiveness of circulating assets.

Manufacturing enterprises. Manufacturing enterprises are the most active, high-potential, highly labor-intensive networking network. The most important features that are typical of them are characterized by the high cost of fixed assets, inventory stocks and incomplete production assets.

Utilities. The most important feature in these enterprises' analysis is the ability to calculate the traditional solvency, liquidity, asset and equity profitability. As the most important unit of service for communal enterprises, the degree of comprehensiveness of long-term liabilities is assessed. Particular emphasis is placed on the costs of utility companies. The current situation in their funding (self-financing, local and republican budgets, funds from various funds, funds) will be assessed. Particular emphasis is placed on the analysis of the quality of the debtor's liabilities. Gas and oil refineries. An important element of the financial reporting of the gas and oil refineries is the cost of accounting for the costs associated with the exploration and production of oil and gas. The share of fixed assets in the gas and oil refineries is the highest of the total assets.

The amount of liabilities is also very high compared to other companies.

The efficiency and effectiveness of investment capital will be considered as an important indicator.