Aged Debtor Summary for Naja Group of Companies

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Credit Policy of the Colleges

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:

Early Pay Discounts: The management of the colleges should facilitate discounts for early payments by debtors of the college. The management should incorporate discounting policies in the structure of the debtor’s management policy which will encourage the debtors of the colleges to make quick payments which will in terms reduce the collection period of the colleges (Owolabi & Obida, 2012).
Credit Collection Agency: The management of the colleges can render help from credit collection agency which specializes in collection of credit and will be in most cases be able to bring down the collection period of the colleges.

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:

The management of the colleges should introduce discounting policy in case the debtors make early payments. The discounting policy will be encouraging the debtors to make early payments.
The colleges can hire a credit agency in order to facilitate smooth operations and collection of debtors.
The collection period option of 90 days period should be allowed on a basis which can increase the revenue generation of the colleges.
The colleges can increase the amount of credit sales which the company can allow which will increase the total sales of the colleges as a whole.
The management of the colleges should introduce a new collection period of 120 days for students who are bringing in new students as referrals and also are prime clients of the colleges that is such students are taking more than one course in 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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