You Need To Ace The Ap Language Synthesis Essay

B2 first for first year law school exams

During the economic analysis economic processes are studied in their interrelation and interdependence. First of all the major defining factors influencing economic processes are investigated essential. Implementation of the following analyses is carried out:

Formation of market economy demands development of the analysis first of all at the micro level, that is at the level of the separate enterprises, their internal structural divisions. At the same time the analysis is necessary and on macro - the level as economic generalizations are not contraindicated to the commercial relations, the principles and requirements of the free market.

There is a set of problems. And the first of them - how to buy cheap qualitative raw materials, proceeding from limited resources how quicker to deliver it and in due time to pay off with suppliers? How to expand a sales market and to sell favourably to the production?

Constantly changing economic situation in the country leads to sharp changes in the markets of raw materials and materials, is sold that has essential impact on an economic condition of the enterprise obliged to survive in these conditions.

The coefficient of the current liquidity characterizes the general security of the enterprise with current assets for conducting economic activity and timely repayment of urgent obligations of the enterprise.

What part of short-term debt the organization at the expense of the available money and short-term financial investments which are quickly realized in case of need can cover the absolute liquidity index showing. The indicator pays off on a formula:

The general solvency of the enterprise is defined as ability to cover all obligations of the enterprise (short-term and dolgosrochna with all its assets. The coefficient of the general solvency pays off on a formula:

The coefficient of the general solvency of the enterprise is defined as ability to cover all obligations of the enterprise (short-term and dolgosrochna with all its assets. This coefficient is one many lower standard that also makes a difficult situation of the enterprise.

the enterprise carries out inefficient long-term financial investments (capital investments) which are not followed by the corresponding growth of revenue. There can be also a gap between today's investments and a tomorrow's gain of revenue.

Treat the internal reasons such as: unreasoned system of pricing, inability to operate the income, the exceeding growth of obligations to growth of the income and working capital, absence available in cash.

The predicted payment opportunities of the organization on condition of repayment of short-term receivables and realization of the available stocks are reflected by covering coefficient (liquidity coefficient). Instant solvency of the enterprise is characterized by absolute liquidity index. The coefficient of the general solvency of the enterprise shows ability to cover all obligations of the enterprise with all assets.

Fixed assets on balance of the enterprise are not present that testifies to big costs of a tenancy and the equipment. Not always lack of own fixed assets leads to a similar situation. In the presence of a fast production cycle and big revenue many enterprises can exist quite really on borrowed funds. But, apparently, the analyzed enterprise does not consult as by this production costs of production are rather great.

For the end of the reporting period all coefficients of liquidity and solvency have values much below admissible that unambiguously testifies to a deep crisis state of the enterprise and is the basis for recognition it insolvent.

It is represented obvious that insolvency is directly proportional to the volume of obligations. Really, the enterprise which capital completely is own is absolutely solvent, and obligations are absent.