5 Payday is a business providing short term loans. They have recently decided to evaluate the business using the BalanceScorecard approach developed by Kaplan and Norton. Acting as a consultant you are tasked with identifying measures touse in the four areas identified by the Balanced Scorecard, that are most appropriate for the business.You are provided with the following information about its recent performance in order to choose your method.Financial informationcurrent yearprevious yearRevenue£27,000£25,000Gross profit£14,000£12,000Net profit£5,000£6,000Average cash balance£3,000£2,500Average receivables45 days50 daysInternal processesError rates in loan applications20%15%Average time to complete application4 weeks5 weeksCustomer servicesNumber of investors10082Number of borrowers545674Number of complaints5543Innovation and learning% from non-core work2%3%Industry average % non-core work25%15%Employee retention rate50%70%Required:a) Evaluate the financial performance of this company using the financial information only.b) Evaluate the performance based on the non-financial information using the balanced scorecard approachc) Explain why the non-financial information may provide a better indication of the likely future success of Payday.

Here discuss about the details of the evaluation of the performance with the financial activities…

a) Evaluate the financial performance of this company using the financial information only. b) Evaluate the performance based on the non-financial information using the balanced scorecard approach c) Explain why the non-financial information may provide a better indication of the likely future success of Payday.

a) Evaluate the financial performance of this company using the financial information only. b) Evaluate the performance based on the non-financial information using the balanced scorecard approach c) Explain why the non-financial information may provide a better indication of the likely future success of Payday.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 3TP: Assume that you are the controller of a business that provides legal services to clients. Suppose...

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