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Make correct decisions with reliable information.

It was when I was supporting Kaizen for a small and medium-sized enterprise.



"Let's keep the extra inventory as low as possible," we suggested something like a cliché.



Then, the president of the company returned to such a question.


"Why should I reduce my inventory?"


"On the contrary, the accountant's teacher says it is better to have more inventory, but which is it?"




What is the purpose of the accountant's financial analysis?

At first, I couldn't try.


It turns out that I just pointed out the simple idea that the assets on the left side of the balance sheet should be more significant.



There is an item called inventory in the assets, but the viewpoint was that the larger the company's assets (property), the better.


Since work-in-process is a part of assets, the president seems to understand that it is better to have a lot of work-in-process.



Having in-process inventory means that you have the money to buy it. The higher the amount, the more borrowing. In other words, the money goes to sleep.


It was to increase assets ≠ and increase work in the process.


 

I learned that there is a national balance sheet.


Yoichi Takahashi, an economist, quantity policy scholar, and former Okura / Finance bureaucrat, watched the program explained on YouTube.



Mr Takahashi argues that as of 2013, "Japan is the world's largest government asset nation", with government assets of 5 million yen per capita. If sold, financial assets alone will be 300 trillion yen. It seems that you are here.



I immediately took a look at the country's balance sheet. It is information published by Japan's Ministry of Finance.

On the Ministry of Finance website, which writes this article, the information for the second year of Reiwa is the latest, so it is reprinted below.


In the second year of Reiwa, assets are 720 trillion yen for liabilities of 1,376 trillion yen.



A commentary on the contents of the assets was also posted.


If you look at the breakdown explained on the right side of the graph, it consists of cash, loans, tangible fixed assets, capital investment, etc., that they can sell in an emergency.


At first glance, I couldn't find any assets that seemed to be lousy stock.


Are the Treasury and the media appropriate for the tax increase? When explaining, cut out only the amount of public bonds (international) in the balance sheet above, and fuel the anxiety of the honest people as if (the people) had a debt of 1,084 trillion yen. Mr Takahashi's explanation that he is there can also be nodded.



If you look at the website of the Ministry of Finance, you will find such information, so I think the media should analyze this and explain it objectively.



However, according to Mr Takahashi's explanation, the media does not seem to report it because it cannot understand such information on its own without an explanation from the Ministry of Finance.



I want to evaluate the quality of information and use it well without being frightened by hoaxes.

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