Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow Current Yr : 1 Yr Ago 2 Yrs Ago $ 27,123 81,788 101,834 8,558 245,057 $ 464,360 $ 32,345 $ 33,026 55,483 44,933 74,057 49,304 8.407 3,670 230,018 209,467 $ 400,310 $ 340,400 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 earnings Total liabilities and equity $ 116,782 $ 66,976 $ 45,831 89, 046 163,500 95,032 $ 464,360 91,151 76,733 163,500 163,500 78,683 54,336 $ 400,310 $ 340,400 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? 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 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 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? 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory