Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $ 24,875 72,831 92,496 8,338 231,672 $430,212 $ 104,980 79,262 162,500 83,470 $430,212 1 Year Ago $ 29,373 51,922 67,925 7,944 213,708 $ 370,872 $ 63,304 83,595 162,500 61,473 $ 370,872 2 Years Ago For both the current year and one year ago, compute the following ratios: $ 30,900 40,392 43,887 3,332 187,489 $ 306,000 $ 39,988 65,597 163,500 36,915 $ 306,000 to 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favourable or unfavourable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favourable or unfavourable

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Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favourable or unfavourable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of tota assets favourable or unfavourable? 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