Payday is a business providing short term loans. They have recently decided to evaluate the business using the Balance Scorecard approach developed by Kaplan and Norton. Acting as a consultant you are tasked with identifying measures to use in the four areas identified by the Balanced Scorecard, that are most appropriate for the business. You are provided with the following information about its recent performance in order to choose your method. Financial information current year previous year Revenue Gross profit 27,000 25,000 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: a) Evaluate the financial performance of this company using the financial information only. b) Evaluate the performance based on the non-financial information using the balanced scorecard approach c) Explain why the non-financial information may provide a better indication of the likely future success of Payday