The Common Size percentages for the given balance sheets The Common Size percentages for the given balance sheets are as follows: Simon Company Common Size Balance Sheet Current Year (%) 1 Year ago (%) 2 Years ago (%) ASSETS: Cash 6.1% 8.0% 10.0% Accounts Receivable , net 17.1% 14.0% 13.3% Merchandise Inventory 21.5% 18.5% 14.3% Prepaid Expenses 2.0% 2.1% 1.3% Plant assets, net 53.3% 57.3% 61.1% TOTAL ASSETS 100.0% 100.0% 100.0% LIABILITIES AND EQUITY: Accounts Payable 24.8% 16.9% 13.6% Long Term Notes Payable 18.8% 22.8% 22.1% Common Stock, $78 par value 31.3% 36.7% 43.3% Retained Earnings 25.1% 23.5% 21.0% TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0% The Common Size percentages for the given balance sheets are calculated as follows: Simon Company Common Size Balance Sheet Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%) A B = A / 523000 C D = C/445000 C D = C/377500 ASSETS: Cash 31,800 6.1% 35,625 8.0% 37,800 10.0% Accounts Receivable, net 89,500 17.1% 62,500 14.0% 50,200 13.3% Merchandise Inventory 112,500 21.5% 82,500 18.5% 54,000 14.3% Prepaid Expenses 10,700 2.0% 9,375 2.1% 5,000 1.3% Plant assets, net 278,500 53.3% 255,000 57.3% 230,500 61.1% TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0% LIABILITIES AND EQUITY: Accounts Payable 129,900 24.8% 75,250 16.9% 51,250 13.6% Long Term Notes Payable 98,500 18.8% 101,500 22.8% 83,500 22.1% Common Stock, $78 par value 163,500 31.3% 163,500 36.7% 163,500 43.3% Retained Earnings 131,100 25.1% 104,750 23.5% 79,250 21.0% TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0% Concept Introduction: Common Size Financial Statement: Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Expert Solution & Answer

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Answer 6

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Answer 7

Chapter 17, Problem 6E

Requirement-1

To determine

To Calculate:

The Common Size percentages for the given balance sheets

The Common Size percentages for the given balance sheets are as follows:

Simon Company
Common Size Balance Sheet
Current Year (%) 1 Year ago (%) 2 Years ago (%)
ASSETS:
Cash
6.1%
8.0%
10.0%
Accounts Receivable, net
17.1%
14.0%
13.3%
Merchandise Inventory
21.5%
18.5%
14.3%
Prepaid Expenses
2.0%
2.1%
1.3%
Plant assets, net
53.3%
57.3%
61.1%
TOTAL ASSETS 100.0% 100.0% 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
24.8%
16.9%
13.6%
Long Term Notes Payable
18.8%
22.8%
22.1%
Common Stock, $78 par value
31.3%
36.7%
43.3%
Retained Earnings
25.1%
23.5%
21.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%

The Common Size percentages for the given balance sheets are calculated as follows:

Simon Company
Common Size Balance Sheet
Current Year ($) Current Year (%) 1 Year ago ($) 1 Year ago (%) 2 Years ago ($) 2 Years ago (%)
A B = A / 523000 C D = C/445000 C D = C/377500
ASSETS:
Cash
31,800
6.1%
35,625
8.0%
37,800
10.0%
Accounts Receivable, net
89,500
17.1%
62,500
14.0%
50,200
13.3%
Merchandise Inventory
112,500
21.5%
82,500
18.5%
54,000
14.3%
Prepaid Expenses
10,700
2.0%
9,375
2.1%
5,000
1.3%
Plant assets, net
278,500
53.3%
255,000
57.3%
230,500
61.1%
TOTAL ASSETS 523,000 100.0% 445,000 100.0% 377,500 100.0%
LIABILITIES AND EQUITY:
Accounts Payable
129,900
24.8%
75,250
16.9%
51,250
13.6%
Long Term Notes Payable
98,500
18.8%
101,500
22.8%
83,500
22.1%
Common Stock, $78 par value
163,500
31.3%
163,500
36.7%
163,500
43.3%
Retained Earnings
131,100
25.1%
104,750
23.5%
79,250
21.0%
TOTAL LIABILITIES AND EQUITY 523,000 100.0% 445,000 100.0% 377,500 100.0%

Concept Introduction:

Common Size Financial Statement:

Common Size Analysis is prepared as % format which shows readymade analysis for the financial statements. For the Income statement the common size format shows all the amounts as a % of sales revenue and for the Balance sheet the common size format shows the each items of the balance sheet as a % of the Total assets amount.

Answer 8

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Answer 9

Requirement-2

To determine

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

Answer 10

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Answer 11

Requirement-3

To determine

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 17 - Prob. 1QS Ch. 17 - QS 17-2 Standard of comparison C2 Identify which...Ch. 17 - Prob. 3QS Ch. 17 - Trend percents P1 Use the following information to...Ch. 17 - QS17-5 Common-size analysis P2 Refer to the...Ch. 17 - QS 17-6 Computing current ratio and acid-test...Ch. 17 - QS 17-7 Computing accounts receivable turnover and...Ch. 17 - QS 17-8 Computing inventory turnover and days'...Ch. 17 - QS17-9 Computing total asset turnover P3 Dundee...Ch. 17 - Prob. 10QS

Concept explainers

Videos

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Want to see the full answer?

Chapter 17 Solutions

Simon Company
Common Size Balance Sheet
	Current Year (%)	1 Year ago (%)	2 Years ago (%)
ASSETS:
Cash	6.1%	8.0%	10.0%
Accounts Receivable, net	17.1%	14.0%	13.3%
Merchandise Inventory	21.5%	18.5%	14.3%
Prepaid Expenses	2.0%	2.1%	1.3%
Plant assets, net	53.3%	57.3%	61.1%
TOTAL ASSETS	100.0%	100.0%	100.0%

LIABILITIES AND EQUITY:
Accounts Payable	24.8%	16.9%	13.6%
Long Term Notes Payable	18.8%	22.8%	22.1%
Common Stock, $78 par value	31.3%	36.7%	43.3%
Retained Earnings	25.1%	23.5%	21.0%
TOTAL LIABILITIES AND EQUITY	100.0%	100.0%	100.0%

Simon Company
Common Size Balance Sheet

	Current Year ($)	Current Year (%)	1 Year ago ($)	1 Year ago (%)	2 Years ago ($)	2 Years ago (%)
	A	B = A / 523000	C	D = C/445000	C	D = C/377500
ASSETS:
Cash	31,800	6.1%	35,625	8.0%	37,800	10.0%
Accounts Receivable, net	89,500	17.1%	62,500	14.0%	50,200	13.3%
Merchandise Inventory	112,500	21.5%	82,500	18.5%	54,000	14.3%
Prepaid Expenses	10,700	2.0%	9,375	2.1%	5,000	1.3%
Plant assets, net	278,500	53.3%	255,000	57.3%	230,500	61.1%
TOTAL ASSETS	523,000	100.0%	445,000	100.0%	377,500	100.0%

LIABILITIES AND EQUITY:
Accounts Payable	129,900	24.8%	75,250	16.9%	51,250	13.6%
Long Term Notes Payable	98,500	18.8%	101,500	22.8%	83,500	22.1%
Common Stock, $78 par value	163,500	31.3%	163,500	36.7%	163,500	43.3%
Retained Earnings	131,100	25.1%	104,750	23.5%	79,250	21.0%
TOTAL LIABILITIES AND EQUITY	523,000	100.0%	445,000	100.0%	377,500	100.0%

Concept explainers

Videos

To identify: If the change in the Accounts Receivable is favorable and unfavorable

To identify: If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable

Want to see the full answer?

Chapter 17 Solutions

To identify:

If the change in the Accounts Receivable is favorable and unfavorable

To identify:

If the change in the Merchandise Inventory as % of Total Assets is favorable and unfavorable