The key players that should take immediate action for the reduction of the number of days taken for trade debtors to pay the amount due are the credit control department. They should tighten the credit control policies and procedures and provide credit only to creditworthy clients after an appropriate evaluation. It is also important that debtors are reminded of their debts due by statements and telephone calls, in which it is highlighted the point that if they exceed the credit limit interest will be charged on their debts. Legal action should also be initialized for long outstanding debtors who are not paying, but should be adopted only after contacting the trade debtor in order to settle the issue in a friendly manner.
More Essay Examples on Media Rubric
The stock figure is not provided in the accounts given and therefore the above mentioned ratio cannot be determined.
A spin-off, which basically is the process of deriving new programs from the existing ones can be a good idea, if the profits of the organization will be boosted fifteen times as much. By examining the balance sheet of the group one can notice that all the additional profits generated by the firm are distributed as dividends to shareholders. Indeed the retained earnings balance during the years remains constant. Therefore by increasing the profits of the broadcasting division one can substantially raise the dividends provided to shareholders. Therefore, from the investors’ perspective, the banker’s suggestion is viable because their return on investment will increase drastically.
Randall H - Media group introduction. (1999). A Level Accounting. Third Edition. Great Britain: Ashford Colour Press Ltd.