ECONOMIC THEORY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600220189-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: June 28, 2011
• Sequence Number: 189
• Publication Date: April 12, 1949
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/06/28: CIA-RDP80-00809A000600220189-9
CLASSIFICA. N
CENTRAL IN 9ENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY USSR DATE OF
INFORMATION 949
SUBJECT Economic theory
HOW
PUBLiSHED Daily newspaper
WHERE
PUBLISHED Khabarovsk
DATE
PUBLISHED 19 Feb 1949
LANGUAGE Russian
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SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
Every enterprise receives from the State a fixed sum of corking capital
(oborotnyye eredstva) to carry out the normal production cycle. In the first
stage, the working capital is put into supplies of rav materials, materials for
;,roduotion, and fuel, all of which are to be used in productior.. In the second
stage, working capital takes the form of semifinished production, goods stir: in
the process of being produced. In the third stage, working capital takes the
form of finished goods ready for shipment to the consumer. An enterprise's re-
quirements for working capital, in the form of materiel supplies, depend first
of all Oil the consumption of these supplies in production. The greater the
;;quantity of production, the greater the conBucption of material supplies, and
'thus, the greater is the need for working capital. 1?equiroments of working cap-
ital also depend on the frequency with whi^h recess ry ma:.*rials zone Into the
warehouse. If raw materials are brcught i?: every day, then only a one-day supply
of materials is needed. If these materials are tr.-ought in every 7 days, the
enterprise muetr,then have a week's supply. It is in this way that working capital,
tin the first stage of the turnover cycle, is put intc supplies of materials nec-
essary for production.
The second stage covers the entire period of producticn. The third stage
begins with the output of finished goofs ant mills when they are sold. The
volume of working capital is deternined by the cortinuencce of the flow cf finish-
ed goods into the warehouse, by the aa'._ra cf the production process, by tYi type
of packing necessary for the finished goods, awl by the distance of the consumer
from the given enterprise. When the prcduction prceeae continues uninterruptedly,
working capital maintains a contixuaus cycle, simultaneously Invested in the
three turnover atagec, transferring fray one stage to the next. The faster this
transfer from each stage Is accomplished, the It-E-9 working capital is needed by
the enterprise for fulfillment of its production plan.
in order to de;,etmine to what extent. working capital is being utilized ef-
fectively, it is necessary to define its relation to the coot of the finished
goods. If an enterprise produces 66 million rubles' worth of finished goods in
a year and it operating with 13.2 million rubles in woriinZ capital, then the
50X1-HUM
Sanitized Copy Approved for Release 2011/06/28: CIA-RDP80-00809A000600220189-9
 Sanitized Copy Approved for Release 2011/06/28: CIA-RDP80-00809A000600220189-9
turnover of working capital is foo=d to :e 66:2,M-2 or five tines. That for
every ruble of working capita',, fi?gh .blea cf f:.,rIshed goods "_ape 9sen produoed,
The length of time for one co np'_.ete t~L,^no va c vo ;r!.:Gg capital la thus 365:
or 73 days.
There are various methods of spep in3 the t %raove;* of to-.^kixe capital.
Basically, they are related (1) to a daerea.es in sulp'ies of rp-v materiale,
materials for produotion, fuel, and tools; (2) to a da;,reass im the ttme allowed
for,: the production cycle; (3) to coapletto:a of finished goo.auu eehe8.h:ie; and
(16) to more rapid shipment of geode to the oons,=er. (Fro-- an e:rticle Sy V,
6onyukhov, Senior Ingineer under the Represe-xtatf:e of the State Plarxirg Coamiis-
eion for )hatflarovek xray.)
Sanitized Copy Approved for Release 2011/06/28: CIA-RDP80-00809A000600220189-9