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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

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 $ 29,670 $ 34,681 $ 37,989
Accounts receivable, net 86,861 60,079 50,155
Merchandise inventory 105,935 81,821 53,955
Prepaid expenses 9,748 9,472 4,262
Plant assets, net 275,747 251,844 229,839
Total assets $ 507,961 $ 437,897 $ 376,200
Liabilities and Equity
Accounts payable $ 130,277 $ 72,525 $ 48,169
Long-term notes payable secured by mortgages on plant assets 97,407 103,738 83,972
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 116,777 98,134 80,559
Total liabilities and equity $ 507,961 $ 437,897 $ 376,200

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?

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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?

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2. Change in accounts receivable
3. Change in merchandise inventory

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