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Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 34,258 $ 38,855 $ 39,283

Simon Company's year-end balance sheets follow.

At December 31

Current Year

1 Year Ago

2 Years Ago

Assets

Cash

$ 34,258

$ 38,855

$ 39,283

Accounts receivable, net

95,358

70,771

52,912

Merchandise inventory

119,894

93,519

56,346

Prepaid expenses

10,705

10,720

4,543

Plant assets, net

314,679

281,733

251,816

Total assets

$ 574,894

$ 495,598

$ 404,900

Liabilities and Equity

Accounts payable

$ 146,012

$ 82,081

$ 53,447

Long-term notes payable

111,322

113,988

88,588

Common stock, $10 par value

162,500

162,500

162,500

Retained earnings

155,060

137,029

100,365

Total liabilities and equity

$ 574,894

$ 495,598

$ 404,900

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?


Complete this question by entering your answers in the tabs below.

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

%

%

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