Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,512 $ 40,341 $ 39,574 Accounts receivable, net 98,045 71,995 52,228 Merchandise inventory 120,782 91,441 56,763 Prepaid expenses 10,784 10,694 4,577 Plant assets, net 315,030 284,799 254,758 Total assets $ 579,153 $ 499,270 $ 407,900 Liabilities and Equity Accounts payable $ 148,535 $ 83,533 $ 52,766 Long-term notes payable secured by mortgages on plant assets 105,614 115,980 92,850 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 161,504 136,257 98,784 Total liabilities and equity $ 579,153 $ 499,270 $ 407,900 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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Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December...
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