WORKING CAPITAL OF THE TRADING BUSINESS DURING THE COVID PANDEMIC 19

WORKING CAPITAL OF THE TRADING  BUSINESS DURING THE COVID PANDEMIC 19

(I Ketut Mustanda)

Covid 19 pandemic which hit countries in the world, made many human lives change, starting from the way of daily life to work activities, a situation that cannot be overcome until now, causing many layoffs, so that the number of unemployed is increasing . Bali, which so far has relied on the world of tourism, is very much feeling the impact of the Covid 19 situation, because the countries that have so far made Bali a very popular tourist destination have also stopped their citizens from traveling abroad, including to Bali, so businesses which is related to tourism services becomes keteteran. this has an impact on the survival of companies engaged in tourism and its supporters who have been absorbing the most labor compared to other sectors. In a situation like this, of course, every entrepreneur wants to maintain the survival of his company, and as we know that the cost of human resources in the tourism business is very dominant. One of the efforts that have been made by employers is to start by regulating employees in turn, laying off some employees and arriving at cutting down the number of employees owned or in other words the employer commits work relationships (layoffs). This situation causes the number of unemployed in Bali to increase, as well as the city of Denpasar, which has a large population working in the world of tourism and supporting tourism. Employees who are terminated from the employment relationship as a result of this situation certainly do not just stand by, they try to open their own businesses to sustain the economic life that is no longer dependent on others or become employees of a company. Nowadays there are many emerging businesses whose marketing through online media offers various types of products to meet their daily basic needs, this seems very promising during this 19th pandemic, because many people have reduced their activities to shop at the public market for fear of transmission of covid virus 19. This situation opens up opportunities for the emergence of new businesses in the form of online marketing of products that serve the needs of the community for basic needs products such as kitchen needs that cannot be eliminated but must still be met every day. This will have a positive impact on the acceleration of the recovery of the spread of the covid virus 19, because people are no longer clustered in the public and supermarket chains that are vulnerable as a center for spreading the virus because of the difficulty in maintaining distance and lack of discipline to wear masks and hand washing when doing activities in public and supermarkets. On the other hand, online business does not seem to be a problem for employees who are laid off because they are productive and educated, so mastery of the use of technology is not a problem. However, to create a new business, it cannot be separated from capital issues that must be prepared in the form of working capital for business operations and in the form of fixed capital to buy fixed assets as business facilities / facilities such as business premises and other facilities. considering the effort to meet basic needs such as rice, sugar, onion, garlic and so on can be done from one's own home, it is certainly able to save capital to rent a business place that has been relatively expensive for Denpasar City. Nowadays the number of financial institutions that can help with capital problems faced by those who will create new businesses or business development / expansion is no longer an obstacle, but the problem here is related to how much working capital should be prepared so that businesses made able to run continuously, because if the working capital is prepared too much it will not have a good impact on the business itself that is the business can not work efficiently which will reduce the benefits that can be enjoyed, and vice versa if the amount of working capital available is too a little will also hamper the continuity of business operations, and this will hamper the level of sales growth which in turn will also result in low levels of profits obtained.

working capital is capital that is used to carry out company operations. Working capital is defined as investment that is invested in current assets or short-term assets such as cash, banks, securities, receivables, and inventories (quantitative concept). Cash outflows to finance company expenses or operations are often not in sync with cash inflows obtained from the results of the business activities themselves, where the estimated cash outflows for operations are done long before cash receipts from the sale, in connection with this it is necessary to provide capital work in accordance with needs.

Sufficient working capital will be able to finance the company's daily expenses or operations and this will make the company able to work efficiently and economically and not experience financial difficulties. Given the importance of providing sufficient working capital to ensure the sustainability of the business, the following will be discussed on how to determine the amount of working capital in a commercial business.

Changes in the business activities of a company will result in changes in working capital needs. One simple method for determining the need for working capital in one period (one year) in the future can be calculated or formulated as follows :

Working capital requirements = Working capital bound period x Average daily cash disbursements

The working capital bound period

Starting from the time when cash is invested in working capital components until when it returns to cash. In the trading business, of course, the most dominant cash expenditure is to buy merchandise, often even preceded by payment before the merchandise is received or in other words pay a payment before the goods are received then need time to sell, in sales often done on credit This means that cash is received later after the merchandise is handed over to the buyer. the longer the bound period of working capital will increase the need for working capital, and vice versa the shorter the bound period of working capital will further reduce the need for working capital. The working capital bound period can be described as follows:

Average daily cash disbursement

Is the result of the calculation of all cash disbursements to carry out daily trading business activities in the form of merchandise purchases, payment of labor costs and other operational costs.

Example:

A trading business that sells rice has the following data:

- The average length of time that rice is kept until it is sold out is ……………… .................   7 days

- Average length of collection of receivables …………………………………………………..   3 days

                                                                                Total length of attachment …………………………............. 10 days

Average daily cash expenditure:

- Purchase of rice …………………………………………………………. Rp 1,500,000

- Employee wages ………………………………………………………… Rp     85,000

- Sales costs ............................................................................................. Rp     10,000

- Other costs ………………………………………………… ....………… Rp       5,000

Total daily expenses ... .................................  Rp. 1,600,000

Disarming it for unexpected needs, requires a minimum of available cash of Rp 1,000,000

Based on these data, the amount of working capital needs can be calculated

(10 x Rp 1,600,000) + Rp 1,000,000 = Rp 17,000,000

To determine the amount of working capital needs, two things need to be considered, namely the bound period of working capital and the average daily cash expenditure. If the period of working capital is fixed while the amount of cash expenditure every day in the future increases due to the growing business, which is reflected by increased sales, then of course to support the increase in sales will require a greater amount of working capital. So these two things are factors that determine the size of working capital needs.