Simon Company's year-end balance sheets follow. At December 31Current Yr1 Yr Ago2 Yrs AgoAssets Cash $36,740 $42,946 $44,736 Accounts receivable, net 108,593 74,412 60,238 Merchandise inventory 136,536 96,363 63,531 Prepaid expenses 11,949 11,385 5,020 Plant assets, net 322,735 306,405 273,875 Total assets $616,553 $531,511 $447,400 Liabilities and Equity Accounts payable $153,522 $89,825 $59,647 Long-term notes payable secured bymortgages on plant assets 113,594 125,915 100,853 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 185,937 152,271 123,400 Total liabilities and equity $616,553 $531,511 $447,400 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? Complete this question by entering your answers in the tabs below.Req 1Reg 2 and 3Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentageanswers to 1 decimal place.)SIMON COMPANYCommon-Size Comparative Balance SheetsDecember 31Current Year1 Year Ago2 Years AgoAssetsCash%%%Accounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assets%%Liabilities and EquityAccounts payable%%%Long-term notes payable secured bymortgages on plant assetsCommon stock, $10 parRetained earningsTotal liabilities and equity%%< Req 1Req 2 and 3 > Complete this question by entering your answers in the tabs below.Req 1Reg 2 and 3Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentageanswers to 1 decimal place.)SIMON COMPANYCommon-Size Comparative Balance SheetsDecember 31Current Year1 Year Ago2 Years AgoAssetsCash%%%Accounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assets%%Liabilities and EquityAccounts payable%%%Long-term notes payable secured bymortgages on plant assetsCommon stock, $10 parRetained earningsTotal liabilities and equity%%< Req 1Req 2 and 3 >

Common size analysis means where each item of balance sheet is expressed in form of percentage and…

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 36,740 $ 42,946 $ 44,736 Accounts receivable, net 108,593 74,412 60,238 Merchandise inventory 136,536 96,363 63,531 Prepaid expenses 11,949 11,385 5,020 Plant assets, net 322,735 306,405 273,875 Total assets $ 616,553 $ 531,511 $ 447,400 Liabilities and Equity Accounts payable $ 153,522 $ 89,825 $ 59,647 Long-term notes payable secured by mortgages on plant assets 113,594 125,915 100,853 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 185,937 152,271 123,400 Total liabilities and equity $ 616,553 $ 531,511 $ 447,400 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?

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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Simon Company's year-end balance sheets follow.

At December 31	Current Yr	1 Yr Ago	2 Yrs Ago
Assets
Cash		$	36,740	$	42,946	$	44,736
Accounts receivable, net			108,593		74,412		60,238
Merchandise inventory			136,536		96,363		63,531
Prepaid expenses			11,949		11,385		5,020
Plant assets, net			322,735		306,405		273,875
Total assets		$	616,553	$	531,511	$	447,400
Liabilities and Equity
Accounts payable		$	153,522	$	89,825	$	59,647
Long-term notes payable secured by mortgages on plant assets			113,594		125,915		100,853
Common stock, $10 par value			163,500		163,500		163,500
Retained earnings			185,937		152,271		123,400
Total liabilities and equity		$	616,553	$	531,511	$	447,400

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?

Complete this question by entering your answers in the tabs below.
Req 1
Reg 2 and 3
Express the balance sheets in common-size percents. (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 secured by
mortgages on plant assets
Common stock, $10 par
Retained earnings
Total liabilities and equity
%
%
< Req 1
Req 2 and 3 >

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