ACC 600: Accounting and Finance for Managers
Assignments: Week Five
Performing horizontal analysis—income statement
Data for McCormick Designs, Inc. follow:
- Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place.
- Why did 2016 net income increase by a higher percentage than net sales revenue?
Performing vertical analysis of a balance sheet
Tri Designs, Inc. has the following data:
Perform a vertical analysis of Tri Designs’s balance sheet for each year.
Computing key ratios
The financial statements of Victory’s Natural Foods include the following items:
Compute the following ratios for the current year:
- Current ratio
- Cash ratio
- Acid-test ratio
- Inventory turnover
- Days’ sales in inventory
- Days’ sales in receivables
- Gross profit percentage (assume all sales are on credit)