Prepare a balanced scorecard for 2002

Reference no: EM1340623

Alan Enterprises: Prepare a balanced scorecard for 2002 and its forecast for 2003

Alan Enterprises spent $28,600 for employee training in 2002. From a total of 160 employees, eight employees resigned during the year and were replaced with new ones. Employees succeeded in introducing five innovative ideas for which management gave them recognition and prizes amounting to $7,500. Defective products amounted to 192 units from a total of 2,400 units produced. Productive time amounted to 22,500 from a total of 25,000 recorded as processing time. The company's sales amounted to $630,000 from a market which is around 9 times this size. 3 out of 50 major customers have gone bankrupt leaving uncollectible bad debts of around $19,700. Variable cost of production amounted to 56% of sales. The sales commissions are at 6%. Fixed costs amount to $129,500 and general and administration costs amount to $87,450. This is in addition to the employee related costs stated above. The company has total assets of $243,000. The company expects to increase the employee related costs by 25% in 2003 but hopes that defects will be reduced by 30%, production efficiency will increase by 7%, sales will increase by 18% - although the market will not change in total, and variable costs will decrease by 8%, fixed costs will increase by 3%. G & A will increase by 4%. Bad debts will be the same amount. Total assets will remain at the same level.

Required:

Prepare a balanced scorecard for 2002 and its forecast for 2003.

Reference no: EM1340623

Questions Cloud

Explain business policy and strategy : Analyze how the theory applies to the topic of strategic management and Assess how each separate theory you provide builds upon or conflicts with other theories you have provided in your taxonomy

Explain the pros and cons of this methodology : Describe Balanced Scorecard and describe the pros and cons of this methodology.

Master budget and balanced scorecard : What is the balanced scorecard and Is the balanced scorecard a better method to evaluate management and Explain how a balanced scorecard would be used to manage a company

Opportunity cost - transfer prices and methods : Opportunity cost, transfer prices and methods, balanced score and When should opportunity cost be used in determining transfer pricing

Prepare a balanced scorecard for 2002 : Alan Enterprises - Prepare a balanced scorecard for 2002 and its forecast for 2003

Analyzing an article on implementing a balanced scorecard : What is your evaluation of Futura's approach and Does it make good business sense or do you think it could cause problems for the company? Agree or disagree with the issue, then defend your position.

Explain the approach to global management : Which approach to global management is most constructive - Consider various approaches to global organizational management. Which approach is most constructive?

Show the value of a balanced scorecard : Show the value of a Balanced Scorecard and Include in your discussion the components of the Balanced Scorecard.

Determine the performance of sales employee of your team : Prepare an appraisal form that is no more than 2 pages in length that you may use to determine the performance of sales employee of your team.

User Account

All Pages