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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 Req 1 Req 2 and 3 $ 129,900 98,500 163,500 131,100 For both the current year and one year ago, compute the following ratios: 1 Year Ago 2 Years Ago $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 SIMON COMPANY 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. Answer is not complete. $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 Common-Size Comparative Balance Sheets December 31 $ 51,250 83,500 163,500 79,250 $ 377,500 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's year-end balance sheets follow. At December 31 Asset: Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable Common stock, \$10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $31,800$35,625 $37,800 89,500 62,500 50,200 82,500 54,000 9,375 5,000 10,700 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in comrion-size percents. 2. Assuming annual sales have not cbanged 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. 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 1 of 6 Answer is not complete. Complete this question by entering your answers in the tabs below. Express the balance sheets in common-size percents. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal place