Simon Company's year-end balance sheets follow.  At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets                     Cash   $ 36,935   $ 41,463   $ 42,370   Accounts receivable, net     109,168     77,049     58,205   Merchandise inventory     133,260     98,850     60,159   Prepaid expenses     11,894     11,445     4,660   Plant assets, net     328,558     305,516     266,906   Total assets   $ 619,815   $ 534,323   $ 432,300   Liabilities and Equity                     Accounts payable   $ 158,964   $ 90,301   $ 56,493   Long-term notes payable secured bymortgages on plant assets     114,195     120,436     96,494   Common stock, $10 par value     163,500     163,500     163,500   Retained earnings     183,156     160,086     115,813   Total liabilities and equity   $ 619,815   $ 534,323   $ 432,300      1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)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?

Simon Company’s year-end balance sheets follow.  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 secured bymortgages on plant assets     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      (1-a) Compute the current ratio for each of the three years.(1-b) Did the current ratio improve or worsen over the three…

Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Current Assets: Cash and equivalents Accounts receivable Liabilities Current Liabilities: $150,000 Accounts payable $250,000 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Elk Manufacturing generated $500,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue…

Comparative Balance SheetsConsider the following balance sheet data for Great Buy Co., Inc., an electronics and major appliance retailer (amounts in thousands):   Current Year Previous Year Cash and Cash Equivalents $113,756 $12,848 Accounts Receivables 100,593 68,342 Merchandise Inventories 1,212,105 449,983 Other Current Assets 26,303 17,692 Total Current Assets 1,452,757 548,865 Property and Equipment (net) 328,175 227,596 Other Assets 28,804 13,993 Total Assets $1,809,736 $790,454 Current Liabilities $763,853 $334,809 Long-Term liabilities 454,141 127,537 Total Liabilities 1,217,994 462,346 Common Stock 3,965 2,068 Additional Paid-in-Capital 425,768 246,871 Retained Earnings 162,009 79,169 Total Stockholders' Equity 591,742 328,108 Total Liabilities and Stockholders' Equity $1,809,736 $790,454 Prepare a comparative balance sheet, showing increases in dollars and percentages.  Note: Round "Percent Change" answers to one decimal place (ex:…