Current asset management in the enterprise

Parameter	2007	2008
2009
Changes in real gross domestic product growth	8,5	5,2	-7,8
Dynamics of of industrial production, increase (decrease)	6,8	0,6	-9,3
Consumer price increase (decrease):	9	14,1	11,7
Unemployment rate (% of economically active population)	6,1	6,3	8,4
GDP growth rate	1,5	-1,3	-5,2

In the state regulation of high-tech economic activities it may be noted that in Russia there are manufacturers that can produce competitive on quality equipment. Nevertheless, state enterprises are purchasing mostly imported analogues even though they significantly exceed in price. On the other hand, the government encourages entrepreneurs to engage in scientific and technical developments, provides grants, but to use them it is nearly impossible. They are not designed for long term and often constitute a percentage of own investment of enterprises for the previous period, or cancel part of the interest already paid for the use of credit money if the loan is taken to carry out development activities or research. In this case, in the contract of subsidies company must undertake increase of the number of jobs or pay taxes to the budget in excess of the amount of subsidies.

During the considered period taxes did not significantly change (since 2009 income tax has decreased by 4%).

2.6. Analysis of Cash flows

Cash of the company is one of the most important aspects of its strategic financial management, since in the absence of it company cannot conduct business activity and will be forced to cease its existence. Cash is needed for purchase of raw materials, salary payments, implementation of investments, tax payment, dividends, etc. But itself cash not generate revenues, so the primary objective of the policy of cash management is maintaining it at the lowest appropriate level, sufficient for implementation of effective financial and economic activity.
But first of all it is necessary to conduct a retrospective analysis of the company's cash flow and find its value during the report timeframe, basic elements of cash flow, value of cash flows in the context of different activities.
In accordance with international standards, there are three main groups of cash flows: from operating, investing and financing activities.
Inflows from operating activity of the company are formed by revenues from the sale of goods (works, services), collection of receivables advances received from customer. Operating outflows consist of paid invoices of suppliers and contractors, paid salaries, payments to budgetary and extrabudgetary funds, current interest paid for the credit (in part, included in non-operating expenses), etc.
Cash outflows from investing activities include the cost of purchased fixed assets, investments to new construction, acquisition of companies or packages of their shares, loans and credits to other companies. Investment inflows are formed by revenues from sales of fixed assets or construction in progress, costs of sold shares of other companies, long-term debt repayments, the amounts of dividends received by the company during the ownership of shares or interest paid the debtor during the use of long-term loans and credits.