Question
Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800
Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||||
Assets | |||||||||||
Cash | $ | 31,800 | $ | 35,625 | $ | 37,800 | |||||
Accounts receivable, net | 89,500 | 62,500 | 50,200 | ||||||||
Merchandise inventory | 112,500 | 82,500 | 54,000 | ||||||||
Prepaid expenses | 10,700 | 9,375 | 5,000 | ||||||||
Plant assets, net | 278,500 | 255,000 | 230,500 | ||||||||
Total assets | $ | 523,000 | $ | 445,000 | $ | 377,500 | |||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 129,900 | $ | 75,250 | $ | 51,250 | |||||
Long-term notes payable secured by mortgages on plant assets | 98,500 | 101,500 | 83,500 | ||||||||
Common stock, $10 par value | 163,500 | 163,500 | 163,500 | ||||||||
Retained earnings | 131,100 | 104,750 | 79,250 | ||||||||
Total liabilities and equity | $ | 523,000 | $ | 445,000 | $ | 377,500 | |||||
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.
- 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.)
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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?
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