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Required Information [The 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 Current Year $ 27,941 78,551 101,818 9,178 256,083 $ 473,571 1 Year Ago $ 32,007 58,870 75,526 8,830 233,018 $ 408,251 $ 116,740 89,922 163,500 103,409 $ 473,571 Liabilities and Equity Accounts payable Long-tere notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios 2 Years Ago $ 33,027 43,164 47,841 3,742 202,526 $ 330,300 $ 60,304 95,776 163,500 80,671 $ 408,251 $ 44,036 73,726 163,500 49,038 $ 330,300 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?

Required Information [The 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 Current Year $ 27,941 78,551 101,818 9,178 256,083 $ 473,571 1 Year Ago $ 32,007 58,870 75,526 8,830 233,018 $ 408,251 $ 116,740 89,922 163,500 103,409 $ 473,571 Liabilities and Equity Accounts payable Long-tere notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios 2 Years Ago $ 33,027 43,164 47,841 3,742 202,526 $ 330,300 $ 60,304 95,776 163,500 80,671 $ 408,251 $ 44,036 73,726 163,500 49,038 $ 330,300 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?

Managerial Accounting
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 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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1 Required Information [The 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 notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Assets Cash Req 1 For both the current year and one year ago, compute the following ratios 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. Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Peopreen Total assets Current Year $ 27,941 78,551 101,818 Reg 2 and 3 Express the balance sheets in common-size percents. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal place. Liabilities and Equity PORCEPTE Accounts payable 9,178 256,083 $ 473,571 SIMON COMPANY Long-term notes payable Common stock, $10 par Retained earnings Total Babilities and equity $ 116,740 89,922 163,500 103,409 $ 473,571 Common-Size Comparative Balance Sheets December 31 % Hew 1 Year Ago 2 Years Ago $ 32,007 $ 33,027 58,870 43,164 75,526 47,841 8,830 233,018 3,742 202,526 $ 400,251 $ 330,300 $ 68,304 95,776 163,500 89,671 $ 408,251 Current Year 1 Year Ago 2 Years Ago 96 % % 196 % $ 44,036 73,726 163,500 49,038 $ 330,300 % Req 2 and 3> e 51°F A
Transcribed Image Text:1 Required Information [The 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 notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Assets Cash Req 1 For both the current year and one year ago, compute the following ratios 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. Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Peopreen Total assets Current Year $ 27,941 78,551 101,818 Reg 2 and 3 Express the balance sheets in common-size percents. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal place. Liabilities and Equity PORCEPTE Accounts payable 9,178 256,083 $ 473,571 SIMON COMPANY Long-term notes payable Common stock, $10 par Retained earnings Total Babilities and equity $ 116,740 89,922 163,500 103,409 $ 473,571 Common-Size Comparative Balance Sheets December 31 % Hew 1 Year Ago 2 Years Ago $ 32,007 $ 33,027 58,870 43,164 75,526 47,841 8,830 233,018 3,742 202,526 $ 400,251 $ 330,300 $ 68,304 95,776 163,500 89,671 $ 408,251 Current Year 1 Year Ago 2 Years Ago 96 % % 196 % $ 44,036 73,726 163,500 49,038 $ 330,300 % Req 2 and 3> e 51°F A
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