Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 0 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 $ 24,562 74,093 93,158 8, 152 224,834 $ 424,799 $ 28, 418 $ 31, 137 51, 269 40, 694 66, 393 45,545 7,537 3, 357 212,589 190, 667 $ 366, 206 $ 311, 400 $ 107,890 $ 61,889 $ 40, 694 es 78, 265 163,500 75, 144 $ 424,799 85,912 69,508 163,500 163,500 54,905 37, 698 $366, 206 $ 311,400 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? 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. Reg 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 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, S10 par Retained eamings Total liabilities and equity % % Req 2 and 3 >