Question

The following information was taken from Finch Corporation's SEC filings. Number of employees Revenues (in millions) Properties (in thousands) Total assets (in millions) Company-owned stores Net earnings (in millions) Fiscal Year Ended October 1, 2017 October 2, 2016 312,000 268,000 $ 33,587 $ 32,516 6,532 square feet 6,487 square feet $ 14,604 $ 14,551 30, 775 12,886 $ 4,985 $ 4,918 Required a. Indicate whether each line of information in the table above would best be described as being primarily financial accounting or managerial accounting in nature. c.&d. Based on the data identified as financial or managerial in nature from requirement (a), does it appear that Finch's 2017 fiscal year was better or worse than its 2016 fiscal year? e. Calculate the revenue and earnings per employee and per thousand feet to determine which year (2017 or 2016) Finch appeared to be using its facilities more efficiently. Complete this question by entering your answers in the tabs below. Req A Req C and D Req E Based on the data identified as financial or managerial in nature from requirement (a), does it appear that Finch 2017 fiscal year was better or worse than its 2016 fiscal year? Financial accounting Managerial accounting < Req A Req EΣ

Answer 1

1) Describing whether financial accounting or managerial accounting:

Particulars	October 1, 2017		October 2, 2016
Number of employees	312000	Managerial Accounting	268000	Managerial Accounting
Revenues in Mns.($)	33587	Financial Accounting	32516	Financial Accounting
Properties in thounsands (sq. foots)	6532	Managerial Accounting	6487	Managerial Accounting
Total Assets Mns. ($)	14604	Financial Accounting	14551	Financial Accounting
Company-owned stores	30775	Managerial Accounting	12886	Managerial Accounting
Net Earnings Mns. ($)	4985	Financial Accounting	4918	Financial Accounting

2) Based on the Financial and Managerial Accounting Information it seems that performance in the fiscal year 2017 was better than fiscal year 2016. Since all the parameters viz.Revenue, Properties, Total Assets, Company owned stores, Net earnings have increased Fiscal year 2017 was better than Fiscal Year 2016. Except the case that number of employees has also increased which is a negative indicator in managerial accounting, Fiscal year 2017 was better than fiscal year 2016.

3)

Particulars	October 1, 2017		October 2, 2016
Number of Employees (a)	312000		268000
Properties in sq.foot (b)	6532		6487
Revenues Mn.($) (c)	33587		32516
Revenue per employee (c/a) Mn.($)	0.1076		0.1213
Revenue per sq. foot (c/b) Mn.($)	5.1419		5.0125

From the above calculations,

Revenue per sq. foot has increased in fiscal year 2017 as compared to 2016, hence the company has used its properties more efficiently.

Revenue per employee has decreased in fiscal year 2017 as compared to 2016, hence the company has not used its employees efficiently.