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 secured by mortgages on plant assets             Common stock, $10 par             Retained earnings             Total liabilities and equity   %   %   %     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? Show less             2. Change in accounts receivable   3. Change in merchandise inventory

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Simon Company’s year-end balance sheets follow.
 

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets                      
Cash   $ 31,800     $ 35,625   $ 37,800  
Accounts receivable, net     89,500       62,500     50,200  
Merchandise inventory     112,500       82,500     54,000  
Prepaid expenses     10,700       9,375     5,000  
Plant assets, net     278,500       255,000     230,500  
Total assets   $ 523,000     $ 445,000   $ 377,500  
Liabilities and Equity                      
Accounts payable   $ 129,900     $ 75,250   $ 51,250  
Long-term notes payable secured by
mortgages on plant assets
    98,500       101,500     83,500  
Common stock, $10 par value     163,500       163,500     163,500  
Retained earnings     131,100       104,750     79,250  
Total liabilities and equity   $ 523,000     $ 445,000   $ 377,500  
 

 
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 secured by mortgages on plant assets            
Common stock, $10 par            
Retained earnings            
Total liabilities and equity   %   %   %
 

 

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?

Show less
 
 
 
 
   
2. Change in accounts receivable  
3. Change in merchandise inventory
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