! Required information Use the following information for the Exercises below. (Algo) [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 Current Year 1 Year Ago 2 Years Ago $ 29,611 89,323 110,105 9,633 273,445 $ 36,025 62,425 84,124 9,178 249,728 $ 441,480 $ 512,117 Accounts payable $ 126,242 $ 73,864 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 97,241 162,500 126,134 100,525 162,500 104,591 $ 512,117 $ 441,480 $ 35,694 48,077 51,719 4,128 228,282 $ 367,900 $ 49,534 82,119 163,500 72,747 $ 367,900 For both the current year and one year ago, compute the following ratios: Exercise 13-6 (Algo) Common-size percents LO P2 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 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? < Prev 1 of 1 Next > ................. Check my work Required information 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. Note: 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 Accounts receivable, net Merchandise inventory Prepaid expenses 6.0 % % % Plant assets, net Total assets % % % Liabilities and Equity Accounts payable % % % Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % < Req 1 Req 2 and 3 > < Prev 1 of 1 Next > Check my work