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 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 28,270 $ 32,054 $ 35,455 Accounts receivable, net 82,756 57,251 45,896 Merchandise inventory 100,959 74,889 49,867 Prepaid expenses 9,286 8,501 3,863 Plant assets, net 257,888 240, 373 212,619 Total assets $ 479, 159 $ 413,068 $ 347,700 Liabilities and Equity Accounts payable $ 119,311 $ 69,808 $ 46,814 Long-term notes payable 90,983 93,106 78,379 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 105,365 86,654 59,007 Total liabilities and equity $ 479, 159 $ 413,068 $ 347,700 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. 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? Complete this question by entering your answers in the tabs below. Req1 Reg 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 Express the balance sheets in common-size percents. (Do not round intermediate calcula 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 % % % Complete this question by entering your answers in the tabs below. Reg 1 Reg 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory Reg1 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Denominator: Numerator: = 11 1 1 = = Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio to 1 to 1 to 1 11 II Required 1A Required 1B > (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the current ratio improve or worsen over the three-year period? Current ratio 1-a) Compute the current ratio for each of the three years. 1-b) Did the current ratio improve or worsen over the three-year period? 12-a) Compute the acid-test ratio for each of the three years 12-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required LA Required 28 Compute the acid-test ratio for each of the three years. Acid-test ratio Denominator Acid-Test Ratio Numerator: Short-term investments Acid fest ratio to 1 Current Year: 1 Year Ago: 2 Years Ago . nu 10 to 1 . Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Did the acid-test ratio improve or worsen over the three-year period? Acid-test ratio
