4 B D 1 2 Simon Company's year-end balance sheets follow. 3 4 At December 31 Current Year 1 Year Ago 2 Years Ago 5 Assets 6 Cash $31,800 $35,625 $37,800 7 Accounts receivable, net 89,500 62,500 50,200 8 Merchandise inventory 112,500 82,500 54,000 9 Prepaid expenses 10,700 9,375 5,000 10 Plant assets, net 278,500 255,000 230,500 11 Total assets $523,000 $445,000 $377,500 12 Liabilities and Equity 13 Accounts payable $129,900 $75,250 $51,250 14 Long-term notes payable 98,500 101,500 83,500 15 Common stock, $10 par value 163,500 163,500 163,500 16 Retained earnings 131,100 104,750 79,250 17 Total liabilities and equity $523,000 $445,000 $377,500 18 19 Required: 20 1. Express the balance sheets in common-size percents. 21 22 (Use cells A4 to D17 from the given information to complete this question.) 23 B H I D E F G H 21 22 (Use cells A4 to 017 from the given information to complete this question.) 23 24 SIMON COMPANY 25 Common-Size Comparative Balance Sheets 26 December 31 27 Current Year 1 Year Ago 2 Years Ago 28 Assets 29 Cash 30 Accounts receivable, net 31 Merchandise inventory 32 Prepaid expenses 33 Plant assets, net + 34 Total assets 35 Liabilities and Equity 36 Accounts payable 37 Long-term notes payable 38 Common stock, $10 par 39 Retained earnings 40 Total liabilities and equity 41 42 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total 43 assets favorable or unfavorable? 44 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total 45 assets favorable or unfavorable? 46 47 2. Change in accounts receivable 48 3. Change in merchandise inventory 49 50 51