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Che Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December...

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Che Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 33,331 96, 603 120,233 10,842 309,627 $ 38,961 $ 39,402 69,559 91,007 10,330 282,071 52,536 55,951 4,422 245,689 $491,928 $ 398,000 Total assets $570,636 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $146,351 82,304 52,011 108, 352 109,749 88, 838 163,500 163,500 163,500 152,433 $570,636 136,375 93,651 Total liabilities and equity $ 491,928 $ 398, 000 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? Complete this question by entering your answers in the tabs below. 2 of 7 Next

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