FINANCING OF PERMANENT WORKING CAPITAL IN AGRICULTURE

Authors

  • Branko Vu?kovi?, PhD Vojvodjanska Bank NBG Group, Sombor
  • Branislav Veselinovi?, PhD University Business Academy in Novi Sad, Faculty of Economics and Engineering Management, Novi Sad
  • Maja Drobnjakovi?, MA University Business Academy in Novi Sad, Faculty of Economics and Engineering Management, Novi Sad

DOI:

https://doi.org/10.5937/ekoPolj1703065V

Keywords:

agriculture, fnancing, permanent working capital, permanent inventory, proftability.

Abstract

In this paper, we attempted to present the problem of establishing adequate structure of fnancing medium agricultural enterprises and to point out the necessity for permanent working capital in those agricultural enterprises which cant cover fxed assets, long-term placements and portion of inventories (raw material and spare parts, production in process) with own equity and long-term sources of fnancing. For the purpose of analysing adequate structure of fnancing medium agricultural enterprises, we will use one of the most popular methods, such as case study and ratio analysis. Results of the research show that in primary agricultural production, next to standard long-term investment loans and short-term loans for investment in agricultural production, there is a necessity for fnancing in the permanent working capital which could assist continuity of production process and enable conditions for more proftable business in agriculture. It also should be noted that real and book value on this level of permanent working capital differs substantially.

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References

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22. Agencija za privredne registre: www.apr.gov.rs
23. Narodna banka Srbije: www.nbs.rs

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Published

2017-09-30

How to Cite

Vučković, B., Veselinović, B., & Drobnjaković, M. (2017). FINANCING OF PERMANENT WORKING CAPITAL IN AGRICULTURE. Economics of Agriculture, 64(3), 1065–1080. https://doi.org/10.5937/ekoPolj1703065V

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Section

Original scientific papers