Acc561 Introduction to Management Accounting: Week 2 Individual Assignment Exercise (E13-5, E13-6)

Acc561 Introduction to Management Accounting
Week 2 Individual Assignment Exercise (E13-5, E13-6)

E13-5
The comparative balance sheets of Nike, Inc. are presented here.
NIKE INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets 2007 2006
Current assets 8,076 7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets ,688 ,870 $10,688 $9,870

Liabilities and Stockholders' Equity
Current liabilities 2,584 2,612
Long-term liabilities 1,079 973
Stockholders' equity 7,025 6,285
Total liabilities and stockholders' equity $10,688 $9,870

Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base. (If amount decreases, use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Round all percentages to 1 decimal place, e.g. 12.5.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007. (If amount decreases, use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Round all percentages to 1 decimal place, e.g. 12.5.)

E13-6
Here are the comparative income statements of Winfrey Corporation.
WINFREY CORPORATION
Comparative Income Statements
For the Years Ended December 31
2010 2009
Net sales 598,000 520,000
Cost of goods sold 477,000 450,000
Gross profit 121,000 70,000
Operating expenses 80,000 45,000
Net income $41,000 $25,000

Instructions:
a. Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base. (Round all percentages to 1 decimal place, e.g. 12.5.)
b. Complete the vertical analysis of the income statement data for Winfrey Corporation for both years. (Round all percentages to 1 decimal place, e.g. 12.5.)
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