Question

Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 2015 20172016 s 32,033 37,072 36,357 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 48,976 114,418 85,730 54,836 4,081 291,723 265,249 234,350 89,164 65,526 9,829 10,213 s537,551 463,406 378,600 Liabilities and Equity Accounts payable Long-term notes payable secured by s 135,189 78,316 49,975 99,038 107,649 86,181 163,500 163,500 163,500 78,944 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 139,824 113,941 537,551 463,406 378,600 Express the balance sheets in common-size percents. (Do not round intermediate calculations and ro answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31, 2015-2017 2016 2017 2015 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Dra Novt Common stock, $10 par value Retained earnings Total liabilities and equity 163 500 163,500 163, 139 824 113.94178 537,551 463,406 378, Express the balance sheets in common-size percents. (Do not round intermediat answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31, 2015-2017 2016 2015 2017 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 Retained earnings Total liabilities and equity

Answer 1

METHOD: DIVIDE INDIVIDUAL ITEMS WITH TOTAL ASSETS OF THE CORRESPONDING YEAR. PRESENTED BELOW:

SIMON COMPANY
COMMON-SIZE COMPARATIVE BALANCE SHEEET
DECEMBER 31,2015-2017
	2017	%	2016	%	2015	%
ASSET
CASH	32,033	5.96%	37,072	8.00%	36,357	9.60%
ACCOUNTS RECEIVABLE NET	89,164	16.59%	65,526	14.14%	48,976	12.94%
MERCHANDISE INVENTORY	114,418	21.29%	85,730	18.50%	54,836	14.48%
PREPAID ASSETS	10,213	1.90%	9,829	2.12%	4,081	1.08%
PLANT ASSETS, NET	291,723	54.27%	265,249	57.24%	234,350	61.90%
TOTAL ASSETS	537,551	100.00%	463,406	100.00%	378,600	100.00%
LIABILITIES AND EQUITY
ACCOUNTS PAYABLE	135,189	25.15%	78,316	16.90%	49,975	13.20%
LONG TERM NOTES PAYABLE	99,038	18.42%	107,649	23.23%	86,181	22.76%
COMMON STOCK	163,500	30.42%	163,500	35.28%	163,500	43.19%
RETAINED EARNINGS	139,824	26.01%	113,941	24.59%	78,944	20.85%
TOTAL LIABILITY AND EQUITY	537,551	100.00%	463,406	100.00%	378,600	100.00%