1 of 3 4:40:24 Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses- Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago. 2 Years Ago $31,800 89,500 $ 35,625 62,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131,100 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $377,500 1. Express the balance sheets in common-size percents. ces 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? 5 Part 1 of 3 assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. 76 ints Req 1 Req 2 and 3 04:40:13 eBook Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets Hint Assets Cash Accounts receivable, net December 31 Current Year 1 Year Ago 2 Years Ago 31,800.0 % 35,625.0 % 37,800.0 % Print Merchandise inventory Prepaid expenses ferences 89,500.0 62,500.0 112,500.0 50,200.0 82,500.0 54,000.0 10,700.0 9,375.0 5,000.0 Plant assets, net Total assets Liabilities and Equity 278,500.0 255,000.0 230,500.0 523,000.0 % 445,000.0 % 377,500.0 % Accounts payable Long-term notes payable 98,500.0 % 163,500.0 Common stock, $10 par 131,100.0 Retained earnings Total liabilities and equity % % Req 2 and 3> 044000 eBook 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. Print Req 1 Req 2 and 3 References 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? 2. Change in accounts receivable Show less 3. Change in merchandise inventory