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 Accounts payable Current Year 1 Year Ago 2 Years Ago $ 27,693 79,475 97,945 8,568 246,481 $ 460,162 $ 113,435 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 86,510 162,500 97,717 $ 32,053 56,092 71,920 8,247 228,379 $ 396,691 $ 65,030 89,414 162,500 79,747 $ 460,162 $ 396,691 For both the current year and one year ago, compute the following ratios: $ 33,402 44,086 47,910 3,786 211,616 $ 340,800 $ 44,086 75,317 162,500 58,897 $ 340,800 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 > 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 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 Retained earnings Total liabilities and equity % % % % % % % % % % % < Req 1 Req 2 and 3 > < Prev 1 of 1 H Next > Req 1 Req 2 and 3 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? 2. Change in accounts receivable 3. Change in merchandise inventory < Req 1 Req 2 and 3> < Prev 1 of 1 Next > Show less