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?

 

Answer rating: 100% (QA)

1 Express the balance sheets in commonsize percents Current Year Cash 27720 474575 58 Accounts receivable net 80341 474575 169 Merchandise inventory 1... View the full answer