Cost Analysis Isys Chic Paints

Hi I am trying to do a cost analysis on Chic Paints case study for segregation of duties. If they introduced a new member of staff they would be able to keep on top of chasing bad debt which would save the company ?? per year. There aren't many figures to go off to calculate the bad debt percentage on account receivable. The turnover is 120 million so do I randomly make up a percentage of what the bad debt would be or am I missing something?
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I'd take a very basic approach to this:
Say they give 30 days credit terms and year end is 31 December 20XX
120million/12 = approx 10million of sales a month
Half of these sales on credit for example so 5million per month
5million of sales in December approximately outstanding at year end if every customer takes 30 day credit terms to the max - high risk of irrecoverable debts. Take a percentage of say 5%, and still £250k could be outstanding.
Does this make any sense? haha
~AAT Qualified~
Hasan - appendices you definitely need:
1) Source of information ie websites used for research
2) Organisation chart, this should just be a flow chart showing the members of staff in the finance department and how they relate - this will be given in the information
3) Fraud matrix - taken straight from the plan you completed
4) Cost benefit analysis - just a detail of the costs for the recommendations you made. No particular format, just needs to clear and concise.
You can obviously add any more appendices but these 4 are required. It is important you mention these in the report in order.
Hope this helps
~AAT Qualified~