1 Exercise 13-6 Common-size percents LO P2 Current Yr 1 Yr Ago 2 Yrs Ago DOK 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 37,596 107,897 132,974 11,870 334,393 $ 624,730 $ 44,377 $ 45,320 77,660 61,019 101.626 63,730 11,310 4,986 303,587 273,745 $ 538,560 $448,800 int $ 152,447 $ 88,286 $ 59,834 118,624 163,500 190, 159 $ 624,730 122,630 97,201 163,500 163,500 164, 144 128,265 $ 538,560 $ 448,800 inces 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? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 question by entering yo 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 rou answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago 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 Retained earnings Total liabilities and equity % % % Req 2 and 3 >