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Use the following information for the Exercises below. $($Algo$)$

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Simon Company's year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $33,519$ $ $39,180$ $ $42,917$

Accounts receivable, net $99,15072,10055,539$

Merchandise inventory $128,44193,40761,557$

Prepaid expenses $11,23910,8154,815$

Plant assets, net $313,335289,398260,172$

Total assets $ $585,684$ $ $504,900$ $ $425,000$

Liabilities and Equity

Accounts payable $ $145,835$ $ $84,475$ $ $57,783$

Long$-$term notes payable $109,008119,61192,047$

Common stock, $$10$ par value $162,500163,500162,500$

Retained earnings $168,341137,314112,670$

Total liabilities and equity $ $585,684$ $ $504,900$ $ $425,000$

For both the current year and one year ago, compute the following ratios:

Exercise $13-6($Algo$)$ Common$-$size percents LO P$2$

Express the balance sheets in common$-$size percents.

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?

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?

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 not attempted $\%$ not attempted $\%$ not attempted $\%$

Accounts receivable, net not attempted not attempted not attempted

Merchandise inventory not attempted not attempted not attempted

Prepaid expenses not attempted not attempted not attempted

Plant assets, net not attempted not attempted not attempted

Total assets not attempted $\%$ not attempted $\%$ not attempted $\%$

Liabilities and Equity

Accounts payable not attempted $\%$ not attempted $\%$ not attempted $\%$

Long$-$term notes payable not attempted not attempted not attempted

Common stock, $$10$ par not attempted not attempted not attempted

Retained earnings not attempted not attempted not attempted

Total liabilities and equity not attempted $\%$ not attempted $\%$ not attempted $\%$

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?

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$2.$ Change in accounts receivable not attempted

$3.$ Change in merchandise inventory not attempted