Question
Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Simon Company's year-end balance
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 | $ 25,747 | $ 28,904 | $ 31,037 |
Accounts receivable, net | 75,363 | 52,147 | 40,563 |
Merchandise inventory | 90,110 | 70,287 | 44,518 |
Prepaid expenses | 8,127 | 7,979 | 3,449 |
Plant assets, net | 232,730 | 213,163 | 190,833 |
Total assets | $ 432,077 | $ 372,480 | $ 310,400 |
Liabilities and Equity | |||
Accounts payable | $ 105,435 | $ 63,579 | $ 41,383 |
Long-term notes payable | 82,043 | 87,384 | 69,284 |
Common stock, $10 par value | 163,500 | 162,500 | 163,500 |
Retained earnings | 81,099 | 59,017 | 36,233 |
Total liabilities and equity | $ 432,077 | $ 372,480 | $ 310,400 |
For both the current year and one year ago, compute the following ratios:
Exercise 13-6 (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?
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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