Working capital of the San Antonio de Pagua association based on cash flow analysis 2021-2022

Abstract

The working capital constitutes the core part of any company, since without it is heading to become economically destabilized, an organization must have economic resources to satisfy the obligations that arise daily; Likewise, have the timely information provided by the financial statements and that allows the administrator or financial manager to make the right decisions, tending to the growth of the organization. The purpose of this article is to establish the working capital in the San Antonio de Pagua cleaning services association from the 2021-2022 cash flow analysis, to achieve efficient administration and management of working capital for the organization. The descriptive methodology with longitudinal cut was used, since it is based on the documentary review of two economic periods; and which will later affect the way of managing the working capital and the decisions that are made after the present investigation, a quantitative–deductive approach was given, since it goes from examining the financial statements of the years 2021 and 2022, until establishing the working capital. The unit of analysis was a popular and solidarity economy organization and the results obtained were the following: when preparing the statement of cash flows, it was determined that there is no balance between operating, investment, and financing activities. Likewise, when determining the working capital, it is established that the association maintains a negative working capital, therefore, it cannot cover all its expenses in the short term and runs the risk of illiquidity and falling into default.