urnover (£000) 945 900 let profit (£000) 187 180 verage cash balances (£000) 21 20 verage trade receivables days (industry average 30 days) 18 days 22 days nflation rate (%) 3 ppendix 2: Balanced Scorecard (extract) nternal business Processes Current year Previous year rror rates in jobs done 16 % 10% verage job completion time 7 weeks 10 weeks ustomer knowledge Current year Previous year
urnover (£000) 945 900 let profit (£000) 187 180 verage cash balances (£000) 21 20 verage trade receivables days (industry average 30 days) 18 days 22 days nflation rate (%) 3 ppendix 2: Balanced Scorecard (extract) nternal business Processes Current year Previous year rror rates in jobs done 16 % 10% verage job completion time 7 weeks 10 weeks ustomer knowledge Current year Previous year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Explain why non-financial information, such as the type shown in appendix 2, is likely
to give a better indication of the likely future success of the business than the financial
information given in appendix 1
Transcribed Image Text:Appendix 1: Financial information
Previous year
Current year
945
Turnover (£000)
900
Net profit (£000)
187
180
Average cash balances (£000)
Average trade receivables days (industry average 30 days)
Inflation rate (%)
21
20
18 days
22 days
3
3
Appendix 2: Balanced Scorecard (extract)
Internal business Processes
Current year
Previous year
Error rates in jobs done
16 %
10%
Average job completion time
7 weeks
10 weeks
Customer knowledge
Current year
Previous year
Number of customers
1220
1500
Average fee levels (£)
775
600
Market share
14%
20%
Learning and Growth
Current year
Previous year
Percentage of revenue from non-core work
4%
5%
Industry average of the proportion of revenue from non-core work in
Accounting practices
30%
25%
Employee retention rate
60%
80%
Notes
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