Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,325 $ 40,941 $ 41,409 Accounts receivable, net 95,601 68,169 55,770 Merchandise inventory 123,917 93,757 59,995 Prepaid expenses 11,170 10,643 4,555 Plant assets, net 312,345 283,350 260,771 Total assets $ 576,358 $ 496,860 $ 422,500 Liabilities and Equity Accounts payable $ 143,513 $ 82,290 $ 55,212 Long-term notes payable secured by mortgages on plant assets 111,606 111,992 92,439 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 157,739 139,078 111,349 Total liabilities and equity $ 576,358 $ 496,860 $ 422,500 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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?
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,325 $ 40,941 $ 41,409 Accounts receivable, net 95,601 68,169 55,770 Merchandise inventory 123,917 93,757 59,995 Prepaid expenses 11,170 10,643 4,555 Plant assets, net 312,345 283,350 260,771 Total assets $ 576,358 $ 496,860 $ 422,500 Liabilities and Equity Accounts payable $ 143,513 $ 82,290 $ 55,212 Long-term notes payable secured by mortgages on plant assets 111,606 111,992 92,439 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 157,739 139,078 111,349 Total liabilities and equity $ 576,358 $ 496,860 $ 422,500 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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?
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Simon Company's year-end
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | |||||||
Assets | ||||||||||
Cash | $ | 33,325 | $ | 40,941 | $ | 41,409 | ||||
95,601 | 68,169 | 55,770 | ||||||||
Merchandise inventory | 123,917 | 93,757 | 59,995 | |||||||
Prepaid expenses | 11,170 | 10,643 | 4,555 | |||||||
Plant assets, net | 312,345 | 283,350 | 260,771 | |||||||
Total assets | $ | 576,358 | $ | 496,860 | $ | 422,500 | ||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 143,513 | $ | 82,290 | $ | 55,212 | ||||
Long-term notes payable secured by mortgages on plant assets |
111,606 | 111,992 | 92,439 | |||||||
Common stock, $10 par value | 163,500 | 163,500 | 163,500 | |||||||
157,739 | 139,078 | 111,349 | ||||||||
Total liabilities and equity | $ | 576,358 | $ | 496,860 | $ | 422,500 | ||||
1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)
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?
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