Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 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 earninge Total liabilities and equity Current Tr 1 Tr Age 2 Yrs Ago $ 28,376 81,428 $31,055 $ 33,196 103,404 57,471 75,184 46,050 47,133 9.319 8,621 3,000 253,658 237,373 208,521 $ 476,185 $ 120,941 88,628 163,500 103,116 $ 476,105 $410,504 $338,700 $ 67,988 $ 45.603 91,583 163,500 74,853 163,500 87,433 54,746 $410,504 5 338,700 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? Complete this question by entering your answers in the tabs below. Req 1 Req 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 eamings Total liabilities and equity % % % % % Reg 2 and 3 Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, het 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 28,376 $ 31,855 $ 33,196 81,428 103,404 9,319 253,658 $ 476,185 $ 120,941 88,628 163,500 103,116 $ 476,185 57,471 75,184 46,050 47,133 8,621 3,800 237,373 208,521 $ 410,504 $ 338,700 $ 67,988 $ 45,603 91,583 $74,853 163,500 54,744 163,500 87,433 $ 410,504 $ 338,700 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 2 a 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? 2. Change in accounts receivable 3. Change in merchandise inventory