Withholdings and liquidity, in a transport company

Abstract

Through the system of withholdings from companies that purchase goods and services, a percentage of the payment to their suppliers is deducted and deposited in the name of these taxpayers as advance payment of the general sales tax in the state financial entity. There are companies at the beginning of operations with large investment flows in which their tax credit is greater than it should be, despite this, due to minimal errors they have their funds collected, subtracting their liquidity to meet current expenses, and given that the cost of money in time is important, this study determines the level of relationship between withholdings and liquidity in the transport company Valentín & Valentino S.A.C. within the period 2014 - 2016. The study was carried out under the quantitative approach, which is of applied type, of correlational level, using the non-experimental and cross-sectional design. The population and sample consisted of 36 financial statements corresponding to the periods 2014 - 2016, the techniques applied to obtain the data were documentary review and systematization of information. The results show that there is a mean positive relationship between withholdings and current ratio (rs= -0.562** p=0.000<0.05) and between withholdings and defensive evidence (rs= -0.544** p=0.001<0.05); however, no relationship was found between withholdings and working capital (rs=0.090 p=0.603>0.05), although, theoretically these funds would considerably increase working capital if released. Finally, to the extent that withholdings have accumulated and have not been properly released, there is a decreased amount of cash on hand and the company must resort to its sales flows.