FORMATION AND DISTRIBUTION OF PROFIT
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 3, Issue 65
Abstract
The economic situation in Ukraine, as compared to previous years, is rather ambiguous. Still many important questions have not yet been resolved. At present, attempts are being made to reform some sections of the economy, but no significant changes have taken place. The economic development of the country depends directly on the activities of the company, as well as the result of this activity. An important value for the enterprise is profit, which is the main purpose and motive of entrepreneurial activities; a material source of economic and social development, investment and innovation activity. The purpose of the work is to study the economic activity of the enterprise, to determine the effective policy of the enterprise for the distribution and use of profits, to find ways to optimize the process of formation and distribution of profits of the enterprise, and to develop proposals to increase profits at the enterprise. The general financial indicator of the enterprise is its profit. Profit is the main financial result of any enterprise and the purpose of all activities. The more profit an enterprise receives on invested capital, the more efficiently it operates. Profit is gained from various sources. The main sources are: sales of products, works, services; sale of property (tangible and intangible assets, securities owned by the enterprise); non-operating transactions. The distribution of profit received by the enterprise is carried out in two stages: Stage 1 – Distribution of profits between the enterprise and the state. It is carried out on the conditions stipulated by the current legislation. A profit tax is payable on the total profit. The rest of the net profit goes to the disposal of the enterprise. At the expense of the net income, certain types of taxes and fees as paid such as land tax and rent payments. Stage 2 – Distribution and use of net profit. It is carried out under conditions determined by the owners' decisions, the charter and other documents (collective agreement, individual labor contracts), and normative acts. The main indicator reflecting the final result of the enterprise is profit. It reflects the purpose of the enterprise. It is the division and use of the profit that determines how effective the activity of the enterprise will be in the future. In order to increase the efficiency of profit utilization, it is necessary to increase the profit itself. To increase profits, you need to take the following measures: – reduce production cost; – increase solvency of customers; – take assessment of possible risks and forecast future costs of the enterprise; – respond to changes in the market, adequate behavior; – improvement of production, issue of unique offers, etc.
Authors and Affiliations
N. I. Berenda, S. Yu. Skomorokhova, L. S. Nikitova
Keywords
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