Below are the financial and non-financial information relating to the practice based on the balanced score card format of an accounting firm, Maya Co.

	Current year	Previous year
Financial Information
Turnover	RM945,000	RM900,000
Net profit	RM187,000	RM180,000
Average cash balance	21	20
Average debtor/trade receivables days (industry average 30 days)	18 days	22 days
Inflation rate	3%	3%
Internal Business Process
Error rates in jobs done	16%	10%
Average job completion time	7 weeks	10 weeks
Customer Knowledge
Number of customers	1,220	1,500
Average fee level	RM775	RM600
Market fee	14%	20%
Learning and Growth
Percentage of revenue from non-core work	4%	5%
Industry average of the proportion of revenue from non-core work in accounting practices	30%	25%
Employee retention rate	60%	80%

The core work is defined as being accountancy and taxation. Instead, non-core work is defined primarily as pension advice and business consultancy. Non-core work is traditionally high margin work. The error rates measure the number of jobs with mistakes made by staff as a proportion of the number of clients serviced.

Required:

1. Comment the financial performance of the business (briefly consider growth, profitability, liquidity and credit management).

(6 marks) (CLO2:PLO5:C4)

b) Explain why non-financial information is likely to give a better indication of future success of the business compared to financial information.

(5 marks)

(CLO2:PLO5:C4)

c) Comment on the performance of the business based on the non-financial indicators.

(9 marks)

(CLO2:PLO5:C4)

d) Provide a concluding comment on the overall performance of the business.