! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Current Year 1 Year Ago 2 Years Ago $ 29,710 86,979 110,453 9,761 271,747 $ 34,378 60,775 79,498 9,392 Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 508,650 254,448 $ 438,491 Liabilities and Equity Accounts payable $ 126,654 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 95,626 163,500 $ 75,587 99,844 163,500 99,560 122,870 $ 508,650 $ 438,491 For both the current year and one year ago, compute the following ratios: $ 37,637 47,260 50,840 4,141 229,222 $ 369,100 $ 49,696 83,203 163,500 72,701 $ 369,100 Exercise 13-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. assets favorable or unfavorable? 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
! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Current Year 1 Year Ago 2 Years Ago $ 29,710 86,979 110,453 9,761 271,747 $ 34,378 60,775 79,498 9,392 Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 508,650 254,448 $ 438,491 Liabilities and Equity Accounts payable $ 126,654 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 95,626 163,500 $ 75,587 99,844 163,500 99,560 122,870 $ 508,650 $ 438,491 For both the current year and one year ago, compute the following ratios: $ 37,637 47,260 50,840 4,141 229,222 $ 369,100 $ 49,696 83,203 163,500 72,701 $ 369,100 Exercise 13-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. assets favorable or unfavorable? 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
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
Related questions
Question
am. 401.
![!
Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
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.
Current Year
$ 29,710
86,979
110,453
9,761
271,747
$ 508,650
$ 126,654
95,626
163,500
122,870
$ 508,650
1 Year Ago
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
For both the current year and one year ago, compute the following ratios:
Exercise 13-6 (Algo) Common-size percents LO P2
$ 34,378
60,775
79,498
9,392
254,448
$ 438,491
$ 75,587
99,844
163,500
99,560
$ 438,491
2 Years Ago
$ 37,637
47,269
50,840
4,141
229,222
$ 369,100
$ 49,696
83,203
163,500
72,701
$ 369,100
1. Express the balance sheets in common-size percents.
assets favorable or unfavorable?
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc03f27c5-c3d2-4aa0-8090-252e3fdf684c%2Fdff645f6-1e46-4da6-a864-bbf61a539e5b%2Fezk6vfa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
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.
Current Year
$ 29,710
86,979
110,453
9,761
271,747
$ 508,650
$ 126,654
95,626
163,500
122,870
$ 508,650
1 Year Ago
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity
For both the current year and one year ago, compute the following ratios:
Exercise 13-6 (Algo) Common-size percents LO P2
$ 34,378
60,775
79,498
9,392
254,448
$ 438,491
$ 75,587
99,844
163,500
99,560
$ 438,491
2 Years Ago
$ 37,637
47,269
50,840
4,141
229,222
$ 369,100
$ 49,696
83,203
163,500
72,701
$ 369,100
1. Express the balance sheets in common-size percents.
assets favorable or unfavorable?
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning