Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 24,425 $ 28,262 $ 29,145 Accounts receivable, net 71,505 50,972 40,446 Merchandise inventory 89,005 67,356 43,083 Prepaid expenses 8,024 7,721 3,271 Plant assets, net 225,198 206,169 184,455 Total assets $ 418,157 $ 360,480 $ 300,400 Liabilities and Equity Accounts payable $ 102,039 $ 60,921 $ 39,256 Long-term notes payable secured by mortgages on plant assets 79,400 85,398 67,716 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 73,218 50,661 29,928 Total liabilities and equity $ 418,157 $ 360,480 $ 300,400 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

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer. gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life. esquire company provides financial statements to external users every three years.