Simon Company's year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | |||||||
Assets | ||||||||||
Cash | $ | 28,189 | $ | 33,273 | $ | 33,314 | ||||
Accounts receivable, net | 80,899 | 55,401 | 43,521 | |||||||
Merchandise inventory | 98,694 | 73,209 | 48,748 | |||||||
Prepaid expenses | 8,989 | 8,565 | 3,702 | |||||||
Plant assets, net | 251,638 | 233,353 | 210,615 | |||||||
Total assets | $ | 468,409 | $ | 403,801 | $ | 339,900 | ||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 117,800 | $ | 66,878 | $ | 43,969 | ||||
Long-term notes payable secured by mortgages on plant assets |
88,061 | 94,732 | 73,616 | |||||||
Common stock, $10 par value | 163,500 | 163,500 | 163,500 | |||||||
Retained earnings | 99,048 | 78,691 | 58,815 | |||||||
Total liabilities and equity | $ | 468,409 | $ | 403,801 | $ | 339,900 | ||||
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?
Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)
|
1 | SIMON COMPANY | |||
Common - Size Comparative Balances Sheets | ||||
Dec-31 | ||||
2017 | 2016 | 2015 | ||
Assets : | (a) / 468409 | (b) / 403801 | (c) / 339900 | |
Cash | 6.0% | 8.2% | 9.8% | |
Accounts Receivables, Net | 17.3% | 13.7% | 12.8% | |
Merchandise Inventory | 21.1% | 18.1% | 14.3% | |
Prepaid expenses | 1.9% | 2.1% | 1.1% | |
Plant assets, Net | 53.7% | 57.8% | 62.0% | |
Total assets | 100.0% | 100.0% | 100.0% | |
Liabilities and Equity | ||||
Accounts Payable | 25.1% | 16.6% | 12.9% | |
Long term notes payable secured on Plant assets | 18.8% | 23.5% | 21.7% | |
Common stock, $10 par | 34.9% | 40.5% | 48.1% | |
Retained earnings | 21.1% | 19.5% | 17.3% | |
Total Liabilities and Equity | 100.0% | 100.0% | 100.0% | |
2 | Unfavorable | |||
3 | Unfavorable | |||
Workings: | ||||
SIMON COMPANY | ||||
Balances Sheets | ||||
December 31 | ||||
2017 | 2016 | 2015 | ||
Assets : | (a) | (b) | (c) | |
Cash | $ 28,189 | $ 33,273 | $ 33,314 | |
Accounts Receivables, Net | $ 80,899 | $ 55,401 | $ 43,521 | |
Merchandise Inventory | $ 98,694 | $ 73,209 | $ 48,748 | |
Prepaid expenses | $ 8,989 | $ 8,565 | $ 3,702 | |
Plant assets, Net | $ 2,51,638 | $ 2,33,353 | $ 2,10,615 | |
Total assets | $ 4,68,409 | $ 4,03,801 | $ 3,39,900 | |
Liabilities and Equity | ||||
Accounts Payable | $ 1,17,800 | $ 66,878 | $ 43,969 | |
Long term notes payable secured on Plant assets | $ 88,061 | $ 94,732 | $ 73,616 | |
Common stock, $10 par | $ 1,63,500 | $ 1,63,500 | $ 1,63,500 | |
Retained earnings | $ 99,048 | $ 78,691 | $ 58,815 | |
Total Liabilities and Equity | $ 4,68,409 | $ 4,03,801 | $ 3,39,900 |
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 27,053 $ 32,580 $ 32,617 Accounts receivable, net 80,783 55,898 44,350 Merchandise inventory 102,565 74,603 46,320 Prepaid expenses 8,976 8,468 3,660 Plant assets, net 243,775 227,720 199,253 Total assets $ 463,152 $ 399,269 $ 326,200 Liabilities and Equity Accounts payable $ 114,172 $ 67,476 $ 41,767 Long-term notes payable secured by mortgages on plant assets 86,202 89,995 72,090 Common stock,...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,317 85,810 105,775 9,534 261,539 $ 491,975 $ 34,947 $ 34,304 61,158 44,823 80,031 49,695 8,906 3,735 239,074 213,943 $ 424,116 $ 346,500...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,870 $ 32,049 $ 32,079 Accounts receivable, net 79,466 56,647 42,340 Merchandise inventory 101,912 71,890 46,012 Prepaid expenses 8,565 8,581 3,636 Plant assets, net 247,900 231,448 203,233 Total assets $ 464,713 $ 400,615 $ 327,300 Liabilities and Equity Accounts payable $ 118,028 $ 69,058 $ 43,636 Long-term notes payable secured by mortgages on plant assets 85,619 93,984 71,610 Common stock,...
Simon Company's year-end balance sheets follow. 1 Yr Ago At December 31 2 Yrs Ago Current Yr Assets Cash 33,620 99,370 120,087 10,398 300,711 40,077 $ 70,134 40,936 54,581 58,135 4,548 251,200 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,078 10,214 276,864 486,367 § 409,400 564,186 Total assets Liabilities and Equity Accounts payable 137,673 82,196 $ 55,122 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 89,573 163,500 101,205 105,006...
Simon Company's year-end balance sheets follow Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,338 87,057 112,741 9,480 269,488 $ 509,104 $ 35,111 $ 37,686 61,444 49,755 81,193 52,994 9,032 4,023 252,103 228,742 $ 438,883 $ 373,200...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,897 99,198 118,669 11,022 301,425 $ 563,211 $ 38,842 $ 39,263 66,614 53,937 88,924 58,592 10,298 4,318 280,849 244,490 $ 485,527 $ 400,600...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 25, 113 75,013 94,315 8,005 231,884 $ 434,330 $ 30, 253 $ 29,981 53, 467 41,186 69,268 42,569 7,706 3,432 213,728 188,732 $...
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 26,336 76,331 96,931 8,651 238,131 $ 446,380 $ 31,093 $ 31,747 54,412 42,329 71,190 44,183 8,162 3,423 219,953 195,818 $ 384,819 $ 317,500 $...
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 25,712 $ 29,447 $ 30,067 Accounts receivable, net 74,520 53,658 40,916 Merchandise inventory 92,749 70,203 44,016 Prepaid expenses 8,280 7,730 3,444 Plant assets, net 238,932 218,439 194,657 Total assets $ 440,193 $ 379,477 $ 313,100 Liabilities and Equity Accounts payable $ 107,416 $ 62,849 $ 42,569 Long-term notes payable secured by mortgages on plant assets 81,929 88,153 67,119 Common stock,...
Simon Company's year-end balance sheets follow Current Yr 1 Yr Ago 2 Yrs Ago $ 29,700 $ 35,790 $ 35, 461 91,403 63,258 46, 799 112,690 81,10950,344 9,959 9,489 4,141 275,200 257,726 228,755 $518,952 $447,372 $365,500 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $127,927 $...