Exercise 13-6 Common-size percents LO P2 Current Yr 1 yr Ago 2 Yrs Ago 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-ters notes payable secured by mortgages on plant assets Common stock, S10 par value Retained earnings Total liabilities and equity $ 25, 780 75, 479 96,818 8,556 239, 225 $ 445, 858 $ 30,134 5 31,076 53,810 42, 702 71. 107 44, 118 8.152 3,629 221, 157 198, 775 $ 384,350 $ 320, 300 $ 113, 239 $ 63, 658 543, 548 83, 821 163, 500 85,298 $ 445, 358 80,287 71,494 163,500 163,500 67.915 41,758 $384, 360 S 320, 300 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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? Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place) 2 Years Ago % SIMON COMPANY Common-Sizu Comparative Balance Sheets December 31 Current Year 1 Year 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 1% 9 Req1 Req 2 and 3 Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a porcentage of total assets favorable or unfavorable? 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory