Snaresbrook & Debden Limited produces a monthly age analysis of trade payables. The age analysis at 30 June 2012 is as follows: You are the recently appointed financial controller of Snaresbrook &...

Snaresbrook & Debden Limited produces a monthly age analysis of trade payables. The age analysis at 30 June 2012 is as follows:

You are the recently appointed financial controller of Snaresbrook & Debden Limited. Your assistant has presented you with some notes explaining various issues arising from the analysis.

Notes

1 The average credit period permitted by the company’s suppliers is 45 days.

2 No information is available on the amount of payables that have been outstanding for longer than the credit period permitted by the company’s suppliers.

3 The balance of trade payables outstanding for more than 90 days includes an amount of £4300 which is currently disputed with the supplier. There is a record of the goods having been received, but also a despatch note recording their return to the supplier because they were substandard. The supplier has no record of receiving the goods back again, and is threatening to sue Snaresbrook & Debden Limited for non-payment of the amounts due.

Required: produce a brief report on information conveyed by the age analysis, identifying any unsatisfactory aspects of both the report format and the information reported.