Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. simon company's year-end balance sheets follow.

Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year...

90.2K

Verified Solution

Question

Accounting

Simon Company's year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 34,556 $ 39,593 $ 42,076
Accounts receivable, net 99,162 71,387 54,435
Merchandise inventory 125,924 92,483 60,351
Prepaid expenses 10,798 10,498 4,675
Plant assets, net 309,456 285,949 259,263
Total assets $ 579,896 $ 499,910 $ 420,800
Liabilities and Equity
Accounts payable $ 144,394 $ 87,019 $ 56,657
Long-term notes payable 110,111 114,979 94,857
Common stock, $10 par value 162,500 163,500 163,500
Retained earnings 162,891 134,412 105,786
Total liabilities and equity $ 579,896 $ 499,910 $ 420,800

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?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students