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Ch 13 Ex 13-6 i Saved Help Save & Exit Submit Check my work 1 Simon...

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Ch 13 Ex 13-6 i Saved Help Save & Exit Submit Check my work 1 Simon Companys year-end balance sheets follow. 1 Yr Ago At Dec1 Req 2 and 3 Req 1 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round you1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentag

Ch 13 Ex 13-6 i Saved Help Save & Exit Submit Check my work 1 Simon Company's year-end balance sheets follow. 1 Yr Ago At December 31 Current Yr 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 27,775 82,990 102,258 8,945 263,355 34,475 $ 33,150 46,933 50,489 3,873 18 59,159 78,175 8,698 237,875 polnts 210,755 418,382 $ 345,200 $ 485,323 Total assets eBook Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Hint 124,471 $ 72,121 $ 46,478 Ask 88,504 163,500 108,848 78,578 163,500 56,644 95,266 163,500 Print 87,495 485,323 418,382 $ 345,200 Total liabilities and equity References 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.
1 Req 2 and 3 Req 1 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 18 SIMON COMPANY polnts Common-Size Comparative Balance Sheets December 31 еВook Current Year 1 Year Ago 2 Years Ago Assets Hint Cash % Ask Accounts receivable, net Print Merchandise inventory Prepaid expenses References Plant assets, net Total assets % Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par % Retained earnings Total liabilities and equity
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. Req 1 Req 2 and 3 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? 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory Req 1 Reg 2 and 3>

Answers

Ans. 1 SIMON   COMPANY
Common Size Comparative Balance Sheets
December 31, 2015 - 2017
Current Year 1 Year Ago 2 Years Ago
Assets: Amount % Amount % Amount %
Cash $27,775 5.72% $34,475 8.24% $33,150 9.60%
Accounts receivables $82,990 17.10% $59,159 14.14% $46,933 13.60%
Merchandise inventory $102,258 21.07% $78,175 18.69% $50,489 14.63%
Prepaid expenses $8,945 1.84% $8,698 2.08% $3,873 1.12%
Plant assets, net $263,355 54.26% $237,875 56.86% $210,755 61.05%
Total assets $485,323 100.00% $418,382 100.00% $345,200 100.00%
Liabilities and Equity:
Accounts payable $124,471 31.12% $72,121 18.03% $46,478 11.62%
Long term notes payable $88,504 18.24% $95,266 22.77% $78,578 22.76%
Common stock $163,500 33.69% $163,500 39.08% $163,500 47.36%
Retained earnings $108,848 22.43% $87,495 20.91% $56,644 16.41%
Total Liabilities and Equity $485,323 100.00% $418,382 100.00% $345,200 100.00%
*Calculations for Common Size Balance Sheet:
Amount is percentage from assets side =   Particular amount from assets side / Total assets * 100
Amount is percentage from liabilities side =   Particular amount from liability side / Total liabilities and owner's equity * 100
Ans. 2 Unfavorable
Increase in accounts receivable means business will get it's money in longer time.
If the money will be back in longer time then it will adversely impact the cash flow of business.
Ans. 3 Favorable
Increase in inventory is good for business.. If inventory increases, as a result gross profit & net profit also increases.
.

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