Use the following information for the Exercises below. (Algo) Skip to question [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 $ 26,517 $ 30,075 $ 31,325 Accounts receivable, net 75,332 54,780 42,628 Merchandise inventory 96,629 73,097 47,247 Prepaid expenses 8,286 7,895 3,516 Plant assets, net 238,225 217,764 201,484 Total assets $ 444,989 $ 383,611 $ 326,200 Liabilities and Equity Accounts payable $ 110,802 $ 64,830 $ 44,350 Long-term notes payable 83,658 86,466 73,532 Common stock, $10 par value 162,500 163,500 163,500 Retained earnings 88,029 68,815 44,818 Total liabilities and equity $ 444,989 $ 383,611 $ 326,200 For both the current year and one year ago, compute the following ratios: Exercise 17-6 (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?
