Exercise 17-6 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		$	26,353		$	29,596		$	31,461
Accounts receivable, net			77,126			52,849			41,948
Merchandise inventory			96,030			71,233			46,038
Prepaid expenses			8,403			8,007			3,496
Plant assets, net			229,983			215,811			198,057
Total assets		$	437,895		$	377,496		$	321,000
Liabilities and Equity
Accounts payable		$	111,217		$	63,159		$	42,372
Long-term notes payable secured by mortgages on plant assets			81,501			88,561			72,360
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			81,677			62,276			42,768
Total liabilities and equity		$	437,895		$	377,496		$	321,000

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?