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?
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.)
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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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