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		$	24,154		$	28,233		$	29,116
Accounts receivable, net			71,433			51,425			39,613
Merchandise inventory			88,916			65,290			41,762
Prepaid expenses			7,937			7,336			3,301
Plant assets, net			225,299			207,836			186,308
Total assets		$	417,739		$	360,120		$	300,100
Liabilities and Equity
Accounts payable		$	104,017		$	59,643		$	39,217
Long-term notes payable secured by mortgages on plant assets			76,179			84,484			67,649
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			74,043			52,493			29,734
Total liabilities and equity		$	417,739		$	360,120		$	300,100

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?