Exercise $13-6$ Common$-$size percents p$2$

Judith's AirPods

Nearby

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Simon Company's year$-$end balance sheets follow. $(1)$ Express the balance sheets in common$-$size percents. Round percents to one decimal.

$(2)$ 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? $(3)$ Is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?

BETA

At December $31$

Current Yr $1$ Yr Ago $2$ Yrs Ago

Assets

Cash

$ $31,800$

$ $35,625$

$ $37,800$

Accounts receivable, net

$89,500$

$62,500$

$50,200$

Merchandise inventory

$112,500$

$82,500$

$54,000$

Prepaid expenses

$10,700$

$9,375$

$5,000$

Plant assets, net

$278,500$

$255,000$

$230,500$

Total assets

$$523,000$

$$445,000$

$$377,500$

Liabilities and Equity

Accounts payable

$$129,900$

$ $75,250$

$ $51,250$

Long$-$term notes payable

$98,500$

$101,500$

$83,500$

Common stock, $$10$ par value

$163,500$

$163,500$

$163,500$

Retained earnings

$131,100$

$104,750$

$79,250$

Total liabilities and equity

$$523,000$

$$445,000$

$$377,500$