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 $ 27,970 80, 264 100,917 9,097 251, 134 $ 469,382 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 116,876 90,891 163,500 98,115 $ 469,382 $ 404,640 $ 70,436 92,137 163,500 78,567 Exercise 13-6 (Algo) Common-size percents LO P2 2 Years Ago $ 33,717 45,401 For both the current year and one year ago, compute the following ratios: 48,361 3,635 206,086 $ 337,200 $ 45,846 73,776 163,500 54,078 $ 337,200 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?
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 $ 27,970 80, 264 100,917 9,097 251, 134 $ 469,382 1 Year Ago $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 $ 116,876 90,891 163,500 98,115 $ 469,382 $ 404,640 $ 70,436 92,137 163,500 78,567 Exercise 13-6 (Algo) Common-size percents LO P2 2 Years Ago $ 33,717 45,401 For both the current year and one year ago, compute the following ratios: 48,361 3,635 206,086 $ 337,200 $ 45,846 73,776 163,500 54,078 $ 337,200 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Current Year
$ 27,970
80, 264
100,917
9,097
251,134
$ 469,382
$ 116,876
90,891
163,500
98,115
$ 469,382
1 Year Ago
$ 31,400
58, 349
77,104
8,412
229,375
$ 404,640
Liabilities and Equity
Accounts payable
Long-term 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:
Exercise 13-6 (Algo) Common-size percents LO P2
2 Years Ago
$ 33,717
45,401
48,361
3,635
206,086
$ 337,200
$ 70,436
92,137
163,500
78,567
$ 404,640
$ 45,846
73,776
163,500
54,078
$ 337,200
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%2Fb3995f9f-fece-4aba-9bec-7f0200bb676d%2F4c59c9e4-4236-43e4-98a4-4e399626281c%2F8gx8wzb_processed.png&w=3840&q=75)
Transcribed Image Text: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
Current Year
$ 27,970
80, 264
100,917
9,097
251,134
$ 469,382
$ 116,876
90,891
163,500
98,115
$ 469,382
1 Year Ago
$ 31,400
58, 349
77,104
8,412
229,375
$ 404,640
Liabilities and Equity
Accounts payable
Long-term 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:
Exercise 13-6 (Algo) Common-size percents LO P2
2 Years Ago
$ 33,717
45,401
48,361
3,635
206,086
$ 337,200
$ 70,436
92,137
163,500
78,567
$ 404,640
$ 45,846
73,776
163,500
54,078
$ 337,200
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: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. (Do not round intermediate calculations and round your final percentage
answers to 1 decimal place.)
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Common-Size Comparative Balance Sheets
December 31
SIMON COMPANY
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par
Retained earnings
Total liabilities and equity
Current Year 1 Year Ago 2 Years Ago
%
%
%
%
%
%
%
%
%
%
%
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