The debtor policy of the colleges which is credit policy of the colleges include that 20% of the total sales is done on a credit basis. The management has the policy of offering 30 days, 60 days and 90 days credit period to the students of the colleges (Uremandu, Ben-Caleb & Enyi, 2012). The debtors who pay within 90 days period are estimated to be 1% of the total debtors of the college. The debtors who pay within 60 days period is estimated to be 5% of the total debtors. The debtors who pay within the period of 30 days are estimated to be 10% of the total debtors and the rest of the total debtors are the current debtors of the college.
|
Naja Group of Companies |
|||||
|
|
Campus 1: North Sydney Campus |
||||
|
|
Aged Debtor Summary For 2015/16 |
||||
|
Aged Debtor Budget |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 4,07,527.00 |
$ 1,98,200.00 |
$ 2,09,327.00 |
||
|
% of Debtor Sales |
20% |
20% |
20% |
||
|
Total Debtors |
$ 81,505.40 |
$ 39,640.00 |
$ 41,865.40 |
||
|
Current |
$ 68,464.54 |
$ 33,297.60 |
$ 35,166.94 |
||
|
30 days |
$ 8,150.54 |
$ 3,964.00 |
$ 4,186.54 |
||
|
60 days |
$ 4,075.27 |
$ 1,982.00 |
$ 2,093.27 |
||
|
90 days |
$ 815.05 |
$ 396.40 |
$ 418.65 |
|
Naja Group of Companies |
|||||
|
|
Campus 2: Norwest Business Park Campus |
||||
|
|
Aged Debtor Summary For 2015/16 |
||||
|
Aged Debtor Budget |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 7,00,970.00 |
$ 3,63,327.00 |
$ 3,37,643.00 |
||
|
% of Debtor Sales |
20% |
20% |
20% |
||
|
Total Debtors |
$ 1,40,194.00 |
$ 72,665.40 |
$ 67,528.60 |
||
|
Current |
$ 1,17,762.96 |
$ 61,038.94 |
$ 56,724.02 |
||
|
30 days |
$ 14,019.40 |
$ 7,266.54 |
$ 6,752.86 |
||
|
60 days |
$ 7,009.70 |
$ 3,633.27 |
$ 3,376.43 |
||
|
90 days |
$ 1,401.94 |
$ 726.65 |
$ 675.29 |
|
Naja Group of Companies |
|||||
|
|
Campus 3: Adelaide Campus |
||||
|
|
Aged Debtor Summary For 2015/16 |
||||
|
Aged Debtor Budget |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 3,00,751.00 |
$ 1,42,540.00 |
$ 1,58,211.00 |
||
|
% of Debtor Sales |
20% |
20% |
20% |
||
|
Total Debtors |
$ 60,150.20 |
$ 28,508.00 |
$ 31,642.20 |
||
|
Current |
$ 50,526.17 |
$ 23,946.72 |
$ 26,579.45 |
||
|
30 days |
$ 6,015.02 |
$ 2,850.80 |
$ 3,164.22 |
||
|
60 days |
$ 3,007.51 |
$ 1,425.40 |
$ 1,582.11 |
||
|
90 days |
$ 601.50 |
$ 285.08 |
$ 316.42 |
|
Naja Group of Companies |
|||||
|
|
Campus 4: Perth Campus |
||||
|
|
Aged Debtor Summary For 2015/16 |
||||
|
Aged Debtor Budget |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 7,99,109.00 |
$ 3,98,641.00 |
$ 4,00,468.00 |
||
|
% of Debtor Sales |
20% |
20% |
20% |
||
|
Total Debtors |
$ 1,59,821.80 |
$ 79,728.20 |
$ 80,093.60 |
||
|
Current |
$ 1,34,250.31 |
$ 66,971.69 |
$ 67,278.62 |
||
|
30 days |
$ 15,982.18 |
$ 7,972.82 |
$ 8,009.36 |
||
|
60 days |
$ 7,991.09 |
$ 3,986.41 |
$ 4,004.68 |
||
|
90 days |
$ 1,598.22 |
$ 797.28 |
$ 800.94 |
|
Naja Group of Companies |
||||||
|
|
Campus 5: Canberra Campus |
|||||
|
|
Aged Debtor Summary For 2015/16 |
|||||
|
Aged Debtor Budget |
|
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 4,33,980.00 |
$ 2,11,542.00 |
$ 2,22,438.00 |
|||
|
% of Debtor Sales |
20% |
20% |
20% |
|||
|
Total Debtors |
$ 86,796.00 |
$ 42,308.40 |
$ 44,487.60 |
|||
|
Current |
$ 72,908.64 |
$ 35,539.06 |
$ 37,369.58 |
|||
|
30 days |
$ 8,679.60 |
$ 4,230.84 |
$ 4,448.76 |
|||
|
60 days |
$ 4,339.80 |
$ 2,115.42 |
$ 2,224.38 |
|||
|
90 days |
$ 867.96 |
$ 423.08 |
$ 444.88 |
The best practices for debtors management which the company can use in order to reduce the collection period of debtors for the colleges are given below:
The debtor policy of the colleges which is credit policy of the colleges include that 20% of the total sales is done on a credit basis. The management has the policy of offering 30 days, 60 days and 90 days credit period to the students of the colleges. The summary of debtors which is prepared for each of the campus has credit collection period specified on the basis of 30 days, 60 days and 90 days period (Clarke, Boden & McDonald, 2012). The colleges provide credit allowances to 20 % out of the total sales of the colleges. The total debtor is maximum in Perth campus which is $ 159821.80 which is comparatively more than any other campus’s figure of debtors. As per the analysis of debtors of the colleges suggest that the management is willing to provide credit sales to its customers as long as the total sales and net profit of the colleges also increases. The policy can be made out that the colleges are following profit maximization strategy (Brigham & Houston, 2012).
The following recommendations can be given in order to reduce the collection period of the debtors and also improve the structure of credit sales of the colleges:
|
Naja Group of Colleges- Campus 1 |
|||||
|
|
GST Cash Flow Statement |
||||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 4,07,527.00 |
$ 1,98,200.00 |
$ 2,09,327.00 |
||
|
GST Collected |
$ 40,752.70 |
$ 19,820.00 |
$ 20,932.70 |
||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
– Cost Of Good Sold |
$ 1,42,634.45 |
$ 69,370.00 |
$ 73,264.45 |
||
|
– Accounting Fees |
$ 1,000.00 |
$ 500.00 |
$ 500.00 |
||
|
– Insurance |
$ 3,600.00 |
$ 1,800.00 |
$ 1,800.00 |
||
|
– Store Supplies |
$ 1,214.00 |
$ 590.00 |
$ 624.00 |
||
|
-Advertising |
$ 12,750.00 |
$ 6,000.00 |
$ 6,750.00 |
||
|
– Cleaning |
$ 544.00 |
$ 255.00 |
$ 289.00 |
||
|
– Repairs & Maintenance |
$ 1,500.00 |
$ 600.00 |
$ 900.00 |
||
|
– Rent |
$ 18,000.00 |
$ 9,000.00 |
$ 9,000.00 |
||
|
– Telephone |
$ 1,751.00 |
$ 824.00 |
$ 927.00 |
||
|
– Electricity |
$ 3,450.00 |
$ 1,700.00 |
$ 1,750.00 |
||
|
Total |
$ 1,86,443.45 |
$ 90,639.00 |
$ 95,804.45 |
||
|
GST Paid |
$ 18,644.35 |
$ 9,063.90 |
$ 9,580.45 |
||
|
Cash Flow Analysis |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
GST Collected |
$ 40,752.70 |
$ 19,820.00 |
$ 20,932.70 |
||
|
GST Paid |
$ 18,644.35 |
$ 9,063.90 |
$ 9,580.45 |
||
|
GST Payable |
$ 22,108.36 |
$ 10,756.10 |
$ 11,352.26 |
|
Naja Group of Colleges- Campus 2 |
|||||
|
|
GST Cash Flow Statement |
||||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 7,00,970.00 |
$ 3,63,327.00 |
$ 3,37,643.00 |
||
|
GST Collected |
$ 70,097.00 |
$ 36,332.70 |
$ 33,764.30 |
||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
– Cost Of Good Sold |
$ 2,45,339.50 |
$ 1,27,164.45 |
$ 1,18,175.05 |
||
|
– Accounting Fees |
$ 1,500.00 |
$ 750.00 |
$ 750.00 |
||
|
– Insurance |
$ 3,600.00 |
$ 1,800.00 |
$ 1,800.00 |
||
|
– Store Supplies |
$ 1,851.00 |
$ 875.00 |
$ 976.00 |
||
|
-Advertising |
$ 11,600.00 |
$ 7,100.00 |
$ 4,500.00 |
||
|
– Cleaning |
$ 710.00 |
$ 400.00 |
$ 310.00 |
||
|
– Repairs & Maintenance |
$ 1,900.00 |
$ 850.00 |
$ 1,050.00 |
||
|
– Rent |
$ 22,000.00 |
$ 11,000.00 |
$ 11,000.00 |
||
|
– Telephone |
$ 2,053.00 |
$ 978.00 |
$ 1,075.00 |
||
|
– Electricity |
$ 3,610.00 |
$ 1,860.00 |
$ 1,750.00 |
||
|
Total |
$ 2,94,163.50 |
$ 1,52,777.45 |
$ 1,41,386.05 |
||
|
GST Paid |
$ 29,416.35 |
$ 15,277.75 |
$ 14,138.61 |
||
|
Cash Flow Analysis |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
GST Collected |
$ 70,097.00 |
$ 36,332.70 |
$ 33,764.30 |
||
|
GST Paid |
$ 29,416.35 |
$ 15,277.75 |
$ 14,138.61 |
||
|
GST Payable |
$ 40,680.65 |
$ 21,054.96 |
$ 19,625.70 |
|
Naja Group of Colleges- Campus 3 |
|||||
|
|
GST Cash Flow Statement |
||||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 3,00,751.00 |
$ 1,42,540.00 |
$ 1,58,211.00 |
||
|
GST Collected |
$ 30,075.10 |
$ 14,254.00 |
$ 15,821.10 |
||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
– Cost Of Good Sold |
$ 1,05,262.85 |
$ 49,889.00 |
$ 55,373.85 |
||
|
– Accounting Fees |
$ 700.00 |
$ 350.00 |
$ 350.00 |
||
|
– Insurance |
$ 3,600.00 |
$ 1,800.00 |
$ 1,800.00 |
||
|
– Store Supplies |
$ 506.00 |
$ 247.00 |
$ 259.00 |
||
|
-Advertising |
$ 12,250.00 |
$ 5,500.00 |
$ 6,750.00 |
||
|
– Cleaning |
$ 490.00 |
$ 240.00 |
$ 250.00 |
||
|
– Repairs & Maintenance |
$ 582.00 |
$ 275.00 |
$ 307.00 |
||
|
– Rent |
$ 13,500.00 |
$ 6,750.00 |
$ 6,750.00 |
||
|
– Telephone |
$ 1,440.00 |
$ 756.00 |
$ 684.00 |
||
|
– Electricity |
$ 2,187.00 |
$ 1,100.00 |
$ 1,087.00 |
||
|
Total |
$ 1,40,517.85 |
$ 66,907.00 |
$ 73,610.85 |
||
|
GST Paid |
$ 14,051.79 |
$ 6,690.70 |
$ 7,361.09 |
||
|
Cash Flow Analysis |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
GST Collected |
$ 30,075.10 |
$ 14,254.00 |
$ 15,821.10 |
||
|
GST Paid |
$ 14,051.79 |
$ 6,690.70 |
$ 7,361.09 |
||
|
GST Payable |
$ 16,023.32 |
$ 7,563.30 |
$ 8,460.02 |
|
Naja Group of Colleges- Campus 4 |
|||||
|
|
GST Cash Flow Statement |
||||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 7,99,109.00 |
$ 3,98,641.00 |
$ 4,00,468.00 |
||
|
GST Collected |
$ 79,910.90 |
$ 39,864.10 |
$ 40,046.80 |
||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
– Cost Of Good Sold |
$ 2,79,688.15 |
$ 1,39,524.35 |
$ 1,40,163.80 |
||
|
– Accounting Fees |
$ 1,900.00 |
$ 950.00 |
$ 950.00 |
||
|
– Insurance |
$ 3,600.00 |
$ 1,800.00 |
$ 1,800.00 |
||
|
– Store Supplies |
$ 697.00 |
$ 359.00 |
$ 338.00 |
||
|
-Advertising |
$ 12,805.00 |
$ 7,325.00 |
$ 5,480.00 |
||
|
– Cleaning |
$ 900.00 |
$ 450.00 |
$ 450.00 |
||
|
– Repairs & Maintenance |
$ 776.00 |
$ 287.00 |
$ 489.00 |
||
|
– Rent |
$ 29,000.00 |
$ 14,500.00 |
$ 14,500.00 |
||
|
– Telephone |
$ 2,172.00 |
$ 1,283.00 |
$ 889.00 |
||
|
– Electricity |
$ 2,545.00 |
$ 1,265.00 |
$ 1,280.00 |
||
|
Total |
$ 3,34,083.15 |
$ 1,67,743.35 |
$ 1,66,339.80 |
||
|
GST Paid |
$ 33,408.32 |
$ 16,774.34 |
$ 16,633.98 |
||
|
Cash Flow Analysis |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
GST Collected |
$ 79,910.90 |
$ 39,864.10 |
$ 40,046.80 |
||
|
GST Paid |
$ 33,408.32 |
$ 16,774.34 |
$ 16,633.98 |
||
|
GST Payable |
$ 46,502.59 |
$ 23,089.77 |
$ 23,412.82 |
|
Naja Group of Colleges- Campus 5 |
|||||
|
|
GST Cash Flow Statement |
||||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
Sales |
$ 4,33,980.00 |
$ 2,11,542.00 |
$ 2,22,438.00 |
||
|
GST Collected |
$ 43,398.00 |
$ 21,154.20 |
$ 22,243.80 |
||
|
Particulars |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
– Cost Of Good Sold |
$ 1,51,893.00 |
$ 74,039.70 |
$ 77,853.30 |
||
|
– Accounting Fees |
$ 1,050.00 |
$ 525.00 |
$ 525.00 |
||
|
– Insurance |
$ 3,600.00 |
$ 1,800.00 |
$ 1,800.00 |
||
|
– Store Supplies |
$ 548.00 |
$ 261.00 |
$ 287.00 |
||
|
-Advertising |
$ 10,180.00 |
$ 4,890.00 |
$ 5,290.00 |
||
|
– Cleaning |
$ 513.00 |
$ 250.00 |
$ 263.00 |
||
|
– Repairs & Maintenance |
$ 1,010.00 |
$ 498.00 |
$ 512.00 |
||
|
– Rent |
$ 20,000.00 |
$ 10,000.00 |
$ 10,000.00 |
||
|
– Telephone |
$ 2,200.00 |
$ 1,090.00 |
$ 1,110.00 |
||
|
– Electricity |
$ 2,139.00 |
$ 1,050.00 |
$ 1,089.00 |
||
|
Total |
$ 1,93,133.00 |
$ 94,403.70 |
$ 98,729.30 |
||
|
GST Paid |
$ 19,313.30 |
$ 9,440.37 |
$ 9,872.93 |
||
|
Cash Flow Analysis |
2015/16 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
|
GST Collected |
$ 43,398.00 |
$ 21,154.20 |
$ 22,243.80 |
||
|
GST Paid |
$ 19,313.30 |
$ 9,440.37 |
$ 9,872.93 |
||
|
GST Payable |
$ 24,084.70 |
$ 11,713.83 |
$ 12,370.87 |
Reference
Brigham, E. F., & Houston, J. F. (2012). Fundamentals of financial management. Cengage Learning.
Clarke, M., Boden, P., & McDonald, A. (2012). DEBTOR: debt evaluation, bench?marking and tracking–a water debt management tool to address UK water debt. Water and Environment Journal, 26(3), 292-300.
Owolabi, S. A., & Obida, S. S. (2012). Liquidity management and corporate profitability: Case study of selected manufacturing companies listed on the Nigerian stock exchange. Business Management Dynamics, 2(2), 10-25.
Uremandu, S., Ben-Caleb, E., & Enyi, P. E. (2012). Working capital management, liquidity and Corporate profitability among quoted firms in Nigeria: Evidence from the Productive sector. International journal of academic research in accounting, finance and management sciences, 2(1).
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