Exercise $13-6$ Common$-$size percents LO P$2$

Simon Company's year$-$end balance sheets follow.

At December $31$ Current Yr $1$ Yr Ago $2$ Yrs Ago

Assets

Cash $ $27,720$ $ $32,402$ $ $33,097$

Accounts receivable, net $80,34157,27645,003$

Merchandise inventory $104,07474,93047,942$

Prepaid expenses $9,2878,3343,605$

Plant assets, net $253,153236,174201,353$

Total assets $ $474,575$ $ $409,116$ $ $331,000$

Liabilities and Equity

Accounts payable $ $119,351$ $ $71,215$ $ $42,818$

Long$-$term notes payable secured by

mortgages on plant assets $87,43693,15674,614$

Common stock, $$10$ par value $163,500163,500163,500$

Retained earnings $104,28881,24550,068$

Total liabilities and equity $ $474,575$ $ $409,116$ $ $331,000$

$1.$ 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?