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

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$[$The following information applies to the questions displayed below.$]$

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

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

Assets

Cash $ $28,744$ $ $33,600$ $ $33,627$

Accounts receivable, net $85,83559,39347,124$

Merchandise inventory $105,80580,05450,694$

Prepaid expenses $9,5378,9093,851$

Plant assets, net $262,195242,282211,304$

Total assets $ $492,116$ $ $424,238$ $ $346,600$

Liabilities and Equity

Accounts payable $ $124,988$ $ $73,130$ $ $45,751$

Long$-$term notes payable $91,59397,57576,599$

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

Retained earnings $113,03591,03360,750$

Total liabilities and equity $ $492,116$ $ $424,238$ $ $346,600$

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

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

$[$The following information applies to the questions displayed below.$]$

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

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?