Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-ters notes payable Connon stock, 510 par value Retained earnings Total liabilities and equity $ 28,797 83,461 10), 877 9,180 267,692 $493,007 $33,320 60,691 79,412 8,925 242,658 $ 425,006 5 36,136 48,659 se, 806 3,936 221,36 $361,400 $ 122,759 90,832 163,500 115 916 $493,007 $71,820 98.729 162,500 91.951 $ 425,006 546,751 79,071 163,500 72,078 $.361,400 For both the current year and one year ago, compute the following ratios Exercise 17-6 (Algo) Common-size percents LO P2 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. Required information Reg 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not found intermediate calculations and round your final percentage answers to 1 decimal place.) 2 Years Ago % ces SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago Assets Cash 96 Accounts receivable net Merchandise inventory Prepaid expenses Plant assets, net Total assets % Liabilities and Equity Accounts payablo % Long-torm notos payable Common stock $10 par Retained earings Total liabilities and equity 56 Kfm Reg 2 and 3 > Exercise 17-6 (Algo) Common-size percents LO P2 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. Reg! 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
