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.
Prepare a balanced scorecard for 2002 and its forecast for 2003.
The expert prepares a balanced scorecard for 2002 and its forecast for 2003.