Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 34,475 Accounts receivable, net 101,959 Merchandise inventory Prepaid expenses Plant assets, net 130,758 11,329 317,729 110,974 162,500 171,340 96,043 11,118 293,972 $ 514,009 $ 86,868 118,222 162,500 146,419 $ 41,986 56,541 60,824 4,758 259,991 $ 424,100 $ 54,862 91,852 162,500 114,886 $ 596,250 $ 514,009 $ 424,100 $ 42,354 70,522 $ 596,250 $ 151,436 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? Req 1 Req 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. 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 96 % % 96 % % 96 % % 96 %6 %
Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 34,475 Accounts receivable, net 101,959 Merchandise inventory Prepaid expenses Plant assets, net 130,758 11,329 317,729 110,974 162,500 171,340 96,043 11,118 293,972 $ 514,009 $ 86,868 118,222 162,500 146,419 $ 41,986 56,541 60,824 4,758 259,991 $ 424,100 $ 54,862 91,852 162,500 114,886 $ 596,250 $ 514,009 $ 424,100 $ 42,354 70,522 $ 596,250 $ 151,436 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? Req 1 Req 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. 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 96 % % 96 % % 96 % % 96 %6 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
[The following Information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow.
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
At December 31
Assets
Current Year
1 Year Ago
2 Years Ago
Cash
$ 34,475
Accounts receivable, net
101,959
Merchandise inventory
Prepaid expenses
Plant assets, net
130,758
11,329
317,729
110,974
162,500
171,340
96,043
11,118
293,972
$ 514,009
$ 86,868
118,222
162,500
146,419
$ 41,986
56,541
60,824
4,758
259,991
$ 424,100
$ 54,862
91,852
162,500
114,886
$ 596,250
$ 514,009
$ 424,100
$ 42,354
70,522
$ 596,250
$ 151,436
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71da004f-23dc-47ac-9c54-84cf84b3724a%2F00fca2f6-f381-408d-952d-1110caa6d2d9%2Fruql8ee_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following Information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow.
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
At December 31
Assets
Current Year
1 Year Ago
2 Years Ago
Cash
$ 34,475
Accounts receivable, net
101,959
Merchandise inventory
Prepaid expenses
Plant assets, net
130,758
11,329
317,729
110,974
162,500
171,340
96,043
11,118
293,972
$ 514,009
$ 86,868
118,222
162,500
146,419
$ 41,986
56,541
60,824
4,758
259,991
$ 424,100
$ 54,862
91,852
162,500
114,886
$ 596,250
$ 514,009
$ 424,100
$ 42,354
70,522
$ 596,250
$ 151,436
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?
Transcribed Image Text:Req 1
Req 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.
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
96
%
%
96
%
%
96
%
%
96
%6
%
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