Open AccessOrganizing the cash flow management in the construction industry in the Russian Federation
Author(s) -
К. В. Кетова,
I. G. Rusyak,
Ekaterina Kasatkina,
E. A. Saburova,
Д. Д. Вавилова
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/862/4/042035
Subject(s) - cash flow , context (archaeology) , profitability index , cash flow forecasting , escrow , finance , business , operations research , engineering , geography , archaeology
This paper presents a mathematical model of organizing the cash flow management in implementing an apartment building construction plan in the context of using an escrow account in the Russian Federation. A mathematical model of organizing the cash flow management implies an in-creased income of productive activities in the construction industry by means of changing the volume of sales in square meters and sale prices. Furthermore, a mathematical model enables us to determine the sales strategy of a construction organization, which would provide a minimum lending rate for minimizing a percentage rate which is paid by the construction organization. According to the monthly financing schedule of a building project, a mathematical model of organizing the cash flow management enables us to calculate the most suitable escrow account balance, as well as the volume of sales in square meters. Calculating rise in profitability of financial resources in the construction industry is exemplified by an average developer of one of Russia’s regions in which residential construction grows rapidly – the Udmurt Republic.