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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Subject : Accounting

Transcribed Image Text:ces
1. Express the balance sheets in common-size percents
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?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Express the balance sheets in common-size percents.
Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal place.
SIMON COMPANY
Common Size Comparative Balance Sheets
December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Long term notes payable
Common stock, $10 par
Retained earnings
Total liabilities and equity
Current Year 1 Year Ago 2 Years Ago
%
Reg 1
%
Req 2 and 3>

Transcribed Image Text: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
Current Year
$ 25,197
73,028
91,819
8,032
233,305
$ 431,381
1 Year Ago
$ 30,643
51,022
69,486
7,966
212,763
$ 371,880
$ 104, 191
Long-tera notes payable
Common stock, $10 par value
80,289
162,500
84,401
$ 62,219
87,243
162,500
59,918
Retained earnings
Total liabilities and equity
$ 431,381
$ 371,880
For both the current year and one year ago, compute the following ratios
2 Years Ago
$ 31,601
39,680
44,446
3,511
190,662
$309,900
$ 40,089
67,118
162,500
40,193
$ 309,900
Exercise 17-6 (Algo) Common-size percents LO P2
1. Express the balance sheets in common-size percents
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?
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