| Case Title |
The Monitoring
Puzzle |
| Case Author(s) |
Kuncheria Marattukalam
|
| University |
T. A. Pai Management Institute
(TAPMI), Manipal, India |
| Abstract |
This focus of this case is on monitoring accounts receivables in a
hotel, which is a part of a national chain. The level of accounts receivable
could vary for several reasons: changes in credit policy; its improper implementation;
seasonality in sales; changes in client mix and product mix; and delays
in collection. This case can be used to discuss the problems involved in
using conventional measures like No of days of sales outstanding and aging
schedule. These may give unnecessary alarms and fail to give necessary warnings.
The key learning is that the actual level of accounts receivable at anytime
should be compared with the 'ought to be' level. Simple use of spreadsheet
based system of computing such an 'ought to be' level of accounts receivable
and computing the ratio of actual to this expected level can be demonstrated.
|
| Available In |
MIP Case Collection |
| Publisher |
T. A. Pai Management Institute (TAPMI),
Manipal, India |
| Publisher Case No. |
1997-99-05 |
| Distributor(s) |
T. A.
Pai Management Institute (TAPMI), Manipal, India
|
| Pub/Rev Date |
04/01/1999 |
| ISBN |
|
| Case Length |
5 |
| Teaching Note |
No |
| Pub TN Ref No. |
|
| Pages (TN) |
|
| Issues |
Accounts Receivable; Working
Capital Management; Spreadsheet Modelling |
| Organisation(s) |
|
| Countries |
India |
| Industry |
Hospitality And Tourism |
| Period Covered |
1997-1999 |
| Level |
Postgraduate |