At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total...
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At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 36,506 108,979 131,700 11,874 329,685 117,487 $ 42,245 74,676 101,639 11,425 303,415 $ 533,400 $ 44,446 58,087 65,013 4,987 271,967 $ 444,500 $ 618,744 $ 157,149 Long-term notes payable Common stock, $10 par value Retained earnings 162,500 181,608 $ 89,243 119,002 163,500 161,655 Total liabilities and equity $ 618,744 $ 533,400 $ 444,500 $ 58,087 98,235 163,500 124,678 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 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? SIMON COMPANY Common-Size Comparative Balance Sheets 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 Common stock, $10 par Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago % % % % % % % % % % % % At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 36,506 108,979 131,700 11,874 329,685 117,487 $ 42,245 74,676 101,639 11,425 303,415 $ 533,400 $ 44,446 58,087 65,013 4,987 271,967 $ 444,500 $ 618,744 $ 157,149 Long-term notes payable Common stock, $10 par value Retained earnings 162,500 181,608 $ 89,243 119,002 163,500 161,655 Total liabilities and equity $ 618,744 $ 533,400 $ 444,500 $ 58,087 98,235 163,500 124,678 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 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? SIMON COMPANY Common-Size Comparative Balance Sheets 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 Common stock, $10 par Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago % % % % % % % % % % % %
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