Exercise 13-6 Common-size percents LO P2 Current Yr 1 Yr Ago 2 Yrs Ago 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-tere notes payable secured by mortgages on plant assets Connon stock, $10 par value Retained earnings Total liabilities and equity $ 26,605 74,841 93,148 8,232 239,262 $442,088 $ 38,184 $ 32,077 52,288 43,193 70,505 45,554 7,923 3,458 220) 210 196,518 $ 381,110 $ 320,800 $ 110,080 $ 64,400 $ 42,346 83,113 163,500 85 295 $442,088 87,655 68,770 163,500 163,500 6,542 46.184 $ 381,110 $ 320,800 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? implete this qu answers in the tabs below. Rea 1 Reg 2 and 3 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 December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash 19 % % 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, 510 par Rotanal Paris 17 SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago 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 Retained earnings Total liabilities and equity % Reg Req 2 and 3 >