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Exercise 17-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained carnings Total liabilities and equity $ 36,991 108,272 132,127 11,794 231.570 $ 620,754 $ 41,526 5 43,283 74,169 57,133 99,000 62,703 11,125 4,905 309,313 269,176 $ 535,133 $ 437,200 $ 151,476 $ 88,629 $ 55,979 116,702 163,500 189,076 $ 620,754 119,388 93,723 163,500 163,500 163616 123.998 $ 535,133 5 437,200 1. Express the balance sheets in common size percents (Do not round Intermediate calculations and round your final percentage answers to 1 decimal place.) 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 SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash 1 % % % Accounts receivable net Merchandise inventory Prepaid expenses Plant assets, net Total assets % % % Liabilities and Equity Accounts payable % % Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity % %