Exercise 13-6 Common-size percents LO P2

Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	27,537		$	32,188		$	33,868
Accounts receivable, net			82,229			58,036			45,609
Merchandise inventory			102,373			77,442			47,607
Prepaid expenses			8,689			8,620			3,725
Plant assets, net			250,613			230,129			211,291
Total assets		$	471,441		$	406,415		$	342,100
Liabilities and Equity
Accounts payable		$	119,737		$	67,997		$	44,254
Long-term notes payable secured by mortgages on plant assets			87,745			94,410			76,360
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			100,459			80,508			57,986
Total liabilities and equity		$	471,441		$	406,415		$	342,100

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?

Reg 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 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 % % % % % % Req 1 Reg 2 and 3 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 Change in merchandise inventory 3.