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Use the following information for the Exercises below. (Algo)

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[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 34,258	$ 38,855	$ 39,283
Accounts receivable, net	95,358	70,771	52,912
Merchandise inventory	119,894	93,519	56,346
Prepaid expenses	10,705	10,720	4,543
Plant assets, net	314,679	281,733	251,816
Total assets	$ 574,894	$ 495,598	$ 404,900
Liabilities and Equity
Accounts payable	$ 146,012	$ 82,081	$ 53,447
Long-term notes payable	111,322	113,988	88,588
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	155,060	137,029	100,365
Total liabilities and equity	$ 574,894	$ 495,598	$ 404,900

For both the current year and one year ago, compute the following ratios:

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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Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)

	SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago 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 % %