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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 $ 26,076 76,346 94,052 8,569 245,937 $ 450,980 1 Year Ago $ 113,417 83,936 162,500 91,127 $ 450,980 $ 30,480 53,884 74,081 8,246 222,085 $ 388,776 Liabilities and Equity Accounts payable Long-tere 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 $ 65,703 88,524 162,500 72,049 $ 388,776 2 Years Ago $ 34,058 44,529 47,428 3,711 204,274 $ 334,000 $ 43,206 73,814 162,500 54,480 $ 334,000 Exercise 13-6 (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?

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 $ 26,076 76,346 94,052 8,569 245,937 $ 450,980 1 Year Ago $ 113,417 83,936 162,500 91,127 $ 450,980 $ 30,480 53,884 74,081 8,246 222,085 $ 388,776 Liabilities and Equity Accounts payable Long-tere 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 $ 65,703 88,524 162,500 72,049 $ 388,776 2 Years Ago $ 34,058 44,529 47,428 3,711 204,274 $ 334,000 $ 43,206 73,814 162,500 54,480 $ 334,000 Exercise 13-6 (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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percenta answers to 1 decimal place.) Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Common-Size Comparative Balance Sheets December 31 SIMON COMPANY 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 % %
Transcribed Image Text:Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percenta answers to 1 decimal place.) Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Common-Size Comparative Balance Sheets December 31 SIMON COMPANY 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 % %
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 $ 26,076 76,346 94,052 8,569 245,937 $ 450,980 $ 113,417 83,936 162,500 91,127 $ 450,980 1 Year Ago Liabilities and Equity Accounts payable Long-tere 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: $ 30,480 53,884 74,081 8,246 222,085 $ 388,776 TAL $ 65,703 88,524 162,500 72,049 $ 388,776 2 Years Ago $ 34,058 44,529 47,428 3,711 204,274 $ 334,000 $ 43,206 73,814 162,500 54,480 $ 334,000 Exercise 13-6 (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?
Transcribed Image Text: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 $ 26,076 76,346 94,052 8,569 245,937 $ 450,980 $ 113,417 83,936 162,500 91,127 $ 450,980 1 Year Ago Liabilities and Equity Accounts payable Long-tere 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: $ 30,480 53,884 74,081 8,246 222,085 $ 388,776 TAL $ 65,703 88,524 162,500 72,049 $ 388,776 2 Years Ago $ 34,058 44,529 47,428 3,711 204,274 $ 334,000 $ 43,206 73,814 162,500 54,480 $ 334,000 Exercise 13-6 (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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