Difficult for the company to transport these

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difficult for the company to transport these aggregates because of the strict travel rulesand regulations. Furthermore, the limited number of trucks that the company owns34
prevents it from stockpiling on aggregates in order to reduce the number of times that theworkers have to travel. The direct effect of this issue is the delay on the operationschedule of the company and reduction of the productivity rate of the company’sworkers. If this problem is addressed, it would minimize the workers’ risk of contractingCOVID-19 and maintain the operations.B.Prioritization (Pareto Analysis)Given the key findings with respect to the following operational areas—(1) collection ofclients’ payments and (2) obtaining of construction aggregates, the following prioritizations andanalyses are to be taken note of, in further developing the management practices of Enjoy Realty& Development Corporation.Figure 5.Pareto Analysis for Enjoy Realty & Development Corporation (ERDC)35
Using the Pareto Analysis, the auditors are now able to determine how long it takes forthe company to collect the entire payment due from the customers in each price point. From thebar graph, they can deduct that customers that avail economic housing costing them a grand totalof 400 thousand to 1.25 million pesos takes the longest to finish all their payments. The trendshows that higher price points have shorter payment periods, which tells the auditors that theprice of the housing is not the factor that should be inspected but it’s actually the financialbackground of the customers that should be observed.According to ERDC, the company only turns the property over once the customer is ableto provide the downpayment to the company. The downpayment can be paid at the onset of thetransaction or through monthly amortization, which takes about 2.5 years before propertyturnover. However, the company may turnover the property earlier if the credit history of thecustomer is excellent, which will shorten the turnover period to 2 years. This on its own is a goodincentive for the customers to make their monthly amortization payments. Unfortunately,collection periods remain unsatisfactory. It is now necessary for ERDC to design a differentapproach or method to incentivize or pressure the customers to pay out their amortizationpayments.The auditors recommend the company to prioritize strategically planning the collection ofcustomers that have availed economic housing, especially those that have a history of bad credit,that are from lower income brackets, and those that are affected directly by the economicrecession and the pandemic.Now, in terms of the outsourcing of the aggregates, ERDC has only revealed that theymainly order gravel and sand from their suppliers in Albay. Depending on the need of thesematerials, on average, their stocking lead time is 1 week before it is needed once again and about36
30 cubic meters or about 3 truck loads are needed for every trip. These materials are used mainly

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Term
Fall
Professor
professor_unknown
Tags
Balance Sheet, Erdc, Computed Company

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