Payday is a business providing loans. You are provided with the following information about its recent performance.

Financial information current year previous year

Revenue	27,000	25,000
Gross profit	14,000	12,000
Net profit	5,000	6,000
Average cash balance	3,000	2,500
Average receivables	45 days	50 days
Internal processes
Error rates in loan applications	20%	15%
Average time to complete application	4 weeks	5 weeks
Customer services
Number of investors	100	82
Number of borrowers	545	674
Number of complaints	55	43
Innovation and learning
% from non-core work	2%	3%
Industry average % non-core work	25%	15%
Employee retention rate	50%	70%

REQUIRED:

1. Evaluate the financial performance of this company using the financial information only.

[7 marks]

2. Evaluate the performance based on the non-financial information using the balanced scorecard approach

[8 marks]

3. Explain why the non-financial information may provide a better indication of the likely future success of Payday.

[10 marks]

Total 25 marks