Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 29,754 $ 34,780 $ 35,

image text in transcribed
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 29,754 $ 34,780 $ 35, 156 Accounts receivable, net 87,090 60, 262 47,348 Merchandise inventory 108,425 78,835 49,407 Prepaid expenses 9,392 8,949 3,946 Plant assets, net 264,649 247,614 222,843 Total assets $499,319 $430, 440 $358,700 Liabilities and Equity Accounts payable $121,842 $ 74, 199 $ 48,295 Long-term notes payable secured by mortgages on plant assets 95,748 100,981 77,687 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 118, 220 91,760 69,218 Total liabilities and equity $499,310 $430, 440 $358,780 1. Express the balance sheets in common size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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. Reg 1 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 1 Year 2 Years Year Ago Ago Assets Cash % Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets % Liabilities and Equity Accounts payable 1% % Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total abilities and equity 1% Req 2 and 3 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Information And Cyber Security Governance

Authors: Robert E Davis

1st Edition

1000416089, 9781000416084

More Books

Students also viewed these Accounting questions

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago