Exercise 17-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 37, 875 108,685 138,017 11,714 339,295 $ 635,586 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 $ 43,834 $ 43,887 77,476 58,516 102,379 64,837 11,161 4,876 313,069 271,184 $ 547,919 $ 443,300 $ 153,513 $ 90,746 $ 58,516 119,490 163,500 199,083 $ 635,586 123,501 163,500 170, 172 $ 547,919 97,969 163,500 123, 315 $ 443,300 1. Express the balance sheets in common-size percents. (Do not round intermediate calculation answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts re assets favorable or unfavorable? 2 Annimine annondonlar hoon nnt chonand in the lant thinn unnum in the channa in mnachondini Express the balance sheets in common-size percents. (Do not round intermediate percentage answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets % 8.1% 9.8% 17.0 14.2 13.2 2.1 1.1 % 100.0 % 100.0 % 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 % % % % % % Reg 2 and 3 >