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.)

SIMON COMPANY
Common-Size Comparative Balance Sheets
December 31
	Current Year		1 Year Ago		2 Years Ago
Assets
Cash		%		%		%
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets		%		%		%
Liabilities and Equity
Accounts payable		%		%		%
Long-term notes payable
Common stock, $10 par
Retained earnings
Total liabilities and equity		%		%		%