Solution-Express the balance sheets in common-size percents

Express the balance sheets in common-size percents

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Reference no: EM132474416

Problem - Simon Company's year-end balance sheets follow.

At December 31	Current Yr	1 Yr Ago	2 Yrs Ago
Assets
Cash	$31,832	$38,325	$39,938
Accounts receivable, net	95,027	65,766	50,640
Merchandise inventory	112,518	83,464	56,161
Prepaid expenses	9,943	9,767	4,351
Plant assets, net	290,205	267,786	244,410
Total assets	$539,525	$465,108	$395,500
Liabilities and Equity
Accounts payable	$135,685	$79,389	$52,728
Long-term notes payable secured by mortgages on plant assets	100,416	104,835	88,280
Common stock, $10 par value	163,500	163,500	163,500
Retained earnings	139,924	117,384	90,992
Total liabilities and equity	$539,525	$465,108	$395,500

Required -

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?

Reference no: EM132474416

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Express the balance sheets in common-size percents

Reference no: EM132474416

Reference no: EM132474416

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