Required Information Use the following Information for the Exercises below. (Algo) [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 Current Year 1 Year Ago $23,920 69,328 88,056 7,860 224,536 $ 413,700 $101,981 76,998 $29,387 58,429 66,638 7,564 202,620 $356,638 $ 58,464 81,206 162,500 162,500 72,221 54,468 $ 413,700 $ 356,638 For both the current year and one year ago, compute the following ratios: 2 Years Ago $ 29,125 40,023 43,055 3,236 184,761 $ 300,200 $ 38,438 64,354 162,580 34,988 $ 300,200 Exercise 17-6 (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. 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 5.8 % Accounts receivable, net 2,392.0 8.2 % 29,387.0 9.4 % Merchandise inventory Prepaid expenses Plant assets, net Total assets 100.0% 100.0 % 100.0 % Liabilities and Equity Accounts payable 46.4% 24.0% 27.1 % Long-term notes payable Common stock, $10 par Retained eamings Total liabilities and equity 100.0 % 100.0 % 100.0 %
Required Information Use the following Information for the Exercises below. (Algo) [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 Current Year 1 Year Ago $23,920 69,328 88,056 7,860 224,536 $ 413,700 $101,981 76,998 $29,387 58,429 66,638 7,564 202,620 $356,638 $ 58,464 81,206 162,500 162,500 72,221 54,468 $ 413,700 $ 356,638 For both the current year and one year ago, compute the following ratios: 2 Years Ago $ 29,125 40,023 43,055 3,236 184,761 $ 300,200 $ 38,438 64,354 162,580 34,988 $ 300,200 Exercise 17-6 (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. 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 5.8 % Accounts receivable, net 2,392.0 8.2 % 29,387.0 9.4 % Merchandise inventory Prepaid expenses Plant assets, net Total assets 100.0% 100.0 % 100.0 % Liabilities and Equity Accounts payable 46.4% 24.0% 27.1 % Long-term notes payable Common stock, $10 par Retained eamings Total liabilities and equity 100.0 % 100.0 % 100.0 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
Use the following information for the Exercises below. (Algo)
[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
Current Year
1 Year Ago
2 Years Ago
$ 29,387
58,429
$ 29,125
40,023
66,638
$ 23,920
69,328
88,056
7,860
224,536
$ 413,700
7,564
282,628
$ 356,638
81,206
162,500
54,468
$101,981
76,998
$ 58,464
162,500
72,221
$ 413,780
$ 356,638
For both the current year and one year ago, compute the following ratios:
43,855
3,236
184,761
$ 300,200
$ 38,438
64,354
162,580
34,988
$ 300,200
Exercise 17-6 (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.
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
5.8 %
Accounts receivable, net
2,392.0
8.2 %
29,387.0
9.4 %
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
100.0 %
100.0 %
100.0 %
Liabilities and Equity
Accounts payable
46.4 %
24.0%
27.1 %
Long-term notes payable
Common stock, $10 par
Retained earnings
Total liabilities and equity
100.0 %
100.0 %
100.0 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F355b4d41-95dd-4ca1-95e8-695b34ccebc3%2Fe672a8ad-59b9-4802-9576-2f65f752b7a4%2F9df9da_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Use the following information for the Exercises below. (Algo)
[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
Current Year
1 Year Ago
2 Years Ago
$ 29,387
58,429
$ 29,125
40,023
66,638
$ 23,920
69,328
88,056
7,860
224,536
$ 413,700
7,564
282,628
$ 356,638
81,206
162,500
54,468
$101,981
76,998
$ 58,464
162,500
72,221
$ 413,780
$ 356,638
For both the current year and one year ago, compute the following ratios:
43,855
3,236
184,761
$ 300,200
$ 38,438
64,354
162,580
34,988
$ 300,200
Exercise 17-6 (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.
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
5.8 %
Accounts receivable, net
2,392.0
8.2 %
29,387.0
9.4 %
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
100.0 %
100.0 %
100.0 %
Liabilities and Equity
Accounts payable
46.4 %
24.0%
27.1 %
Long-term notes payable
Common stock, $10 par
Retained earnings
Total liabilities and equity
100.0 %
100.0 %
100.0 %
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education