[ine following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term not es payable Common stock, $10 par value Retained earnings Total liabilities and equity Req 1 Req 2 and 3 For both the current year and one year ago, compute the following ratios: Assets Cash Current Year Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 25,417 73,665 93,566 8,352 238,583 $ 439,582 Complete this question by entering your answers in the tabs below. SIMON COMPANY Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par $ 108,361 81,815 162,500 86,906 $ 439,582 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 as favourable or unfavourable? 3. Assuming annual sales have not changed in the last three years, Is the change in merchandise Inventory as a percentage of total assets favourable or unfavourable? Common-Size Comparative Balance Sheets December 31 Current Year % % Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 1 Year Ago $ 39,922 51,461 71,508 7,799 217,269 $378,959 $ 65,964 89,773 163,500 59,713 $ 378,950 %6 % 1 Year Ago 2 Years Ago %6 2 Years Ago $ 39,937 41,685 44,493 3,449 199,935 $ 389,699 $ 49,459 69,196 162,500 37,535 $ 389,699 %
[ine following information applies to the questions displayed below. Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term not es payable Common stock, $10 par value Retained earnings Total liabilities and equity Req 1 Req 2 and 3 For both the current year and one year ago, compute the following ratios: Assets Cash Current Year Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 25,417 73,665 93,566 8,352 238,583 $ 439,582 Complete this question by entering your answers in the tabs below. SIMON COMPANY Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par $ 108,361 81,815 162,500 86,906 $ 439,582 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 as favourable or unfavourable? 3. Assuming annual sales have not changed in the last three years, Is the change in merchandise Inventory as a percentage of total assets favourable or unfavourable? Common-Size Comparative Balance Sheets December 31 Current Year % % Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 1 Year Ago $ 39,922 51,461 71,508 7,799 217,269 $378,959 $ 65,964 89,773 163,500 59,713 $ 378,950 %6 % 1 Year Ago 2 Years Ago %6 2 Years Ago $ 39,937 41,685 44,493 3,449 199,935 $ 389,699 $ 49,459 69,196 162,500 37,535 $ 389,699 %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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