Question

Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 33,061 92,025 118,090 10,858 300,270 $ 554,804 $ 39, 410 $ 41,069 66,289 52,611 86,712 56.019 9,843 4,608 276,025 252,393 $ 478,279 $ 406,700 $ 138,146 $ 80,829 $ 55, 295 106,389 163.500 146, 769 $ 554,804 111,104 88.083 163.500 163,500 122.346 99,822 $ 478,279 $ 406,700 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 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 I decimal place)

Answer 1

Please find the Solution below:-

SIMON COMPANY
COMMON SIZE COMPARATIVE BALANCE SHEET
Dec-31
	Current Year		1 Year Ago		2 Years ago
Assets		%		%		%
Cash	33,061	6.0	39410	8.2	41069	10.1
Account Receivables	92,025	16.6	66289	13.9	52611	12.9
Merchandies Inventory	1,18,090	21.3	86712	18.1	56019	13.8
Prepaid Expenses	10,858	2.0	9843	2.1	4608	1.1
Plant Assets	3,00,770	54.2	276025	57.7	252393	62.1
Total Assets	5,54,804	100.0	4,78,279	100.0	4,06,700	100.0
Liabilities & Equity
Accounts Paybles	1,38,146	24.9	80829	16.9	55295	13.6
Long Term Notes payables secured by mortagages on plant assets	1,06,389	19.2	111104	23.2	88083	21.7
Common Stock $ 10 par	1,63,500	29.5	163500	34.2	163500	40.2
Retained Earning	1,46,769	26.5	122846	25.7	99822	24.5
Total Liabilities & Equity	5,54,804	100.0	4,78,279	100.0	4,06,700	100.0