Parent Industries Inc.

Financial statements are used by a wide variety of groups as a first step in evaluating a firm's management and understanding a company's business activities. This note explains that absolute figures by themselves tell us little about whether a company is successful or how it has managed its assets and liabilities.

Managerial accounting involves gathering and preparing accounting information, which is useful for managerial decision-making. It seeks to explain what happens to the wealth of the organization under different possible courses of actions. These notes review and explain the methods and process for analysing and presenting data for decision making.

This case focuses on Whole Foods Market Inc. and how it accounts for its leases, in particular whether or not it should capitalize its operating leases. The case write-up includes a company history, Whole Foods Market property, and the accounting controversy related to FASB Statement No. 13.