ACC 600: Accounting and Finance for Managers Assignments: Week Five Exercise 1 Performing horizontal analysis—income statement Data for McCormick Designs, Inc. follow: Instructions 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. 2. Why did 2016 net income increase by a higher percentage than net sales revenue? Exercise 2 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. Exercise 3 Computing key ratios The financial statements of Victory’s Natural Foods include the following items: Compute the following ratios for the current year: 1. Current ratio 2. Cash ratio 3. Acid-test ratio 4. Inventory turnover 5. Days’ sales in inventory 6. Days’ sales in receivables 7. Gross profit percentage (assume all sales are on credit) 1 Exercise 1Name:<Name>Exercise 1Performing horizontal analysis—income statementData for McCormick Designs, Inc. follow:Instructions1.       Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place.MCCORMICK DESIGNS, INC.Comparative Income StatementYears Ended December 31, 2016 and 2016Increase(Decrease)20162015AmountPercentageNet Sales Revenue431,250373,000Expenses:Cost of Goods Sold202,000189,000Selling and Administrative Expenses100,05092,550Other Expenses8,0002,150Total Expenses310,050283,700Net Income121,20089,3002.       Why did 2016 net income increase by a higher percentage than net sales revenue? Exercise 2Name:<Name>Exercise 2Performing vertical analysis of a balance sheetTri Designs, Inc. has the following data:Perform a vertical analysis of Tri Designs’s balance sheet for each year.TRI DESIGNS, INC.Comparative Balance SheetDecember 31, 2016 and 201520162015AssetsTotal Current Assets54,95072,250Property, Plant, and Equipment, Net250,250158,950Other Assets44,80057,800Total Assets350,000289,000LiabilitiesTotal Current Liabilities49,70047,685Long-term Debt118,300196,520Total Liabilities168,000244,205Stockholders' EquityTotal Stockholders' Equity182,00044,795Total Liabilities and Stockholders' Equity350,000289,000 Exercise 3Name:<Name>Exercise 3 Computing key ratiosThe financial statements of Victory’s Natural Foods include the following items:Current YearPreceding YearBalance Sheet:Cash20,00024,000Short-term Investments18,00026,000Net Accounts Receivable50,00078,000Merchandise Inventory70,00066,000Prepaid Expenses12,00010,000Total Current Assets170,000204,000Total Current Liabilities129,00092,000Income Statement:Net Credit Sales478,000Cost of Goods Sold318,000Compute the following ratios for the current year: Provide formula in words#s for formulaFormula1.       Current ratio=2.       Cash ratio=3.       Acid-test ratio=4.       Inventory turnover=5.       Days’ sales in inventorydays=daysAccounts Receivable Turnover Ratio=6.    .

1. ACC 600: Accounting and Finance for Managers
Assignments: Week Five
Exercise 1
Performing horizontal analysis—income statement
Data for McCormick Designs, Inc. follow:
Instructions
1. Prepare a horizontal analysis of the comparative income
statement of McCormick Designs, Inc. Round percentage
changes to one decimal place.
2. Why did 2016 net income increase by a higher percentage
than net sales revenue?
Exercise 2
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.
Exercise 3
Computing key ratios
The financial statements of Victory’s Natural Foods include the
following items:
Compute the following ratios for the current year:
1. Current ratio
2. Cash ratio
3. Acid-test ratio
4. Inventory turnover
5. Days’ sales in inventory
6. Days’ sales in receivables
7. Gross profit percentage (assume all sales are on credit)

2. 1
Exercise 1Name:<Name>Exercise 1Performing horizontal
analysis—income statementData for McCormick Designs, Inc.
follow:Instructions1. Prepare a horizontal analysis of the
comparative income statement of McCormick Designs, Inc.
Round percentage changes to one decimal place.MCCORMICK
DESIGNS, INC.Comparative Income StatementYears Ended
December 31, 2016 and
2016Increase(Decrease)20162015AmountPercentageNet Sales
Revenue431,250373,000Expenses:Cost of Goods
Sold202,000189,000Selling and Administrative
Expenses100,05092,550Other Expenses8,0002,150Total
Expenses310,050283,700Net Income121,20089,3002. Why
did 2016 net income increase by a higher percentage than net
sales revenue?
Exercise 2Name:<Name>Exercise 2Performing vertical analysis
of a balance sheetTri Designs, Inc. has the following
data:Perform a vertical analysis of Tri Designs’s balance sheet
for each year.TRI DESIGNS, INC.Comparative Balance
SheetDecember 31, 2016 and 201520162015AssetsTotal Current
Assets54,95072,250Property, Plant, and Equipment,
Net250,250158,950Other Assets44,80057,800Total
Assets350,000289,000LiabilitiesTotal Current
Liabilities49,70047,685Long-term Debt118,300196,520Total
Liabilities168,000244,205Stockholders' EquityTotal
Stockholders' Equity182,00044,795Total Liabilities and
Stockholders' Equity350,000289,000
Exercise 3Name:<Name>Exercise 3 Computing key ratiosThe
financial statements of Victory’s Natural Foods include the
following items:Current YearPreceding YearBalance
Sheet:Cash20,00024,000Short-term
Investments18,00026,000Net Accounts
Receivable50,00078,000Merchandise
Inventory70,00066,000Prepaid Expenses12,00010,000Total

3. Current Assets170,000204,000Total Current
Liabilities129,00092,000Income Statement:Net Credit
Sales478,000Cost of Goods Sold318,000Compute the following
ratios for the current year: Provide formula in words#s for
formulaFormula1. Current ratio=2. Cash ratio=3.
Acid-test ratio=4. Inventory turnover=5. Days’ sales in
inventorydays=daysAccounts Receivable Turnover Ratio=6.
Days’ sales in receivablesdays=days7. Gross profit
percentage (assume all sales are on credit)=
Grading RubricFaculty Name:Dr. BoldenCourse Name:ACC-
600-2957-Accting & Fin for Managers-08-2016Student
Name:0Assignment 5Students complete the following
worksheet:
ACC 600 Assignments Week FiveStudent
Proficiency71.82BasicDevelopingAccomplished
AdvancedExceptionalEVALUATION CRITERIATotal
WeightPossible Points0-69%70-79 %80-89%90%-
99%100%Comments for StudentPoints0SCOPE - How well does
the student’s work incorporate all aspects of the assignment’s
elements and the learning outcome(s)?
40%28.73The assignment contains few of the assignment
elements and reflects few, if any, aspects of the specified
learning outcome(s).The assignment reflects some of the
assignment elements and aspects of the specified learning
outcome(s).The assignment reflects most of the assignment
elements and aspects of the specified learning outcome(s).The
assignment reflects all assignment elements and aspects of the
specified learning outcome(s).The assignment elements are
comprehensive, incorporated throughout the paper, and content
not relevant to the assignment has been excluded.0ACCURACY
- How accurately does the student use the course concepts,
vocabulary, and principles learned in the course?
40%28.73Very few, if any, learned concepts, terms, and
principles are used correctly throughout the assignment.Some of
the learned concepts, terms, and principles are used correctly

4. throughout the assignment.Most of the learned concepts, terms,
and principles are used correctly throughout the assignment.All
of the learned concepts, terms, and principles are used correctly
throughout the assignment.This assignment reflects a thorough
understanding of course content from the specified weeks, by
applying the concepts and vocabulary in the appropriate
context.0APPLICATION - How well does the student use
critical thinking to apply the course concepts, vocabulary, and
principles learned in the course throughout the assignment and
connect the learning outcomes to current or real world
situations?10%7.18Very few, if any, course concepts are
presented within the student’s assignment, and little analysis is
provided.Course concepts are presented, but few, if any, are
demonstrated through the student’s use of critical thinking
supported by course concepts.Most of the course concepts are
addressed and the student has used an adequate amount of
critical thinking to apply them to the assignment.The
assignment addresses the course content throughout the
assignment that applies the concepts with demonstrated critical
thinking This assignment applies the content to specific real
world examples, analyzing the concepts from different
perspectives. Direct quotations are used sparingly and thoughts
expressed in the student's own words that demonstrate student's
ability to assimilate/apply/extend concepts beyond the content
derived from research sources.0RESEARCH AND SUPPORT -
How well are the student’s ideas and opinions supported with
the depth and breadth of the required research for thorough
understanding?0%0.0The assignment does not include enough
information or examples that support the student’s position.The
assignment presents a position supported by minimal use of
personal experience, observation, and research using both
scholarly and non-scholarly sources.The assignment presents a
position by a fairly thorough analysis of personal experience,
observation, using both scholarly and non-scholarly sources.The
assignment presents a position based on a deep integration of all
relevant support and research sources.The research/supporting

5. material extends well beyond the text and include sources which
supplement and/or provide new perspectives on the subject
matter. When appropriate, all sources reflect reliable scholarly
sources which add depth to the assignment's
content.N/A0ORGANIZATION AND COHERENCE - How well
does the student make use of Excel to complete the
requirements of the assignment.10%7.18Excel was not used; not
all formulas were provided.Student used Excel, although did not
use formulas or show how numbers were computed.Student used
Excel and formulas for some of the computed answers.Student
used some formulas in Excel and/or showed how all numbers
were computed.Student used Excel formulas for all computed
answers.0CONVENTIONS AND WRITING STYLE - How well
does the student apply the rules of Standard Written English and
follow the West Writing Style Handbook
guidelines?0.00%0.0There are serious errors in the application
of Standard Written English that impact clarity and
effectiveness and/or severe violations of West Writing Style
Handbook guidelines.There are fundamental errors in the
application of Standard Written English that impact clarity or
effectiveness and/or significant infractions of West Writing
Style Handbook guidelines.There are minor errors in the
application of Standard Written English or West Writing Style
Handbook guidelines.Language is especially clear and concise
and follows the conventions of Standard Written English, as
well as West Writing Style Handbook guidelines without
error.Writing is free of all grammatical and typographical
errors. Sentences are complete and concise with precise word
choices. All citations and references must be correctly
formatted and applied as required to conform to WEST
standards of academic integrity. N/A100%Total grade0.00