Exercise 17-6 Common-size percents LO P2

Simon Company's year-end balance sheets follow.

Exercise 17-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. 1 Yr Ago 2 Yrs Ago 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 Current Yr $ 31,593 94,342 113,965 10,482 290,507 $ 540,889 $ 37,303 $ 39,254 64,627 52,861 83,675 56, 303 9,596 4,362 271,083 243,720 $ 466,284 $ 396,500 $ 133,335 $ 78,014 $ 52,861 103,721 110,463 89,379 163,500 163,500 163,500 140, 333 114, 307 90,760 $ 540,889 $ 466,284 $ 396,500 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 % 8.1 % % Accounts receivable, net 14.0 13.3 Merchandise inventory 14.2 Prepaid expenses 1.9 2.1 Plant assets, net Total assets 100.0 % 100.0 % 100.0 % Liabilities and Equity Accounts payable 24.71% % % Long-term notes payable secured by 23.7 22.5 mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity 100.0 % 100.0 % 100.01%