Answer:
Simon Company
SIMON COMPANY
Balance Sheets
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets % % %
Cash $ 29,076 5.8 $ 33,644 7.8 $ 34,015 9.7
Accounts receivable, net 85,123 17.1 60,680 14.1 47,668 13.6
Merchandise inventory 109,166 21.9 80,184 18.7 49,287 14.1
Prepaid expenses 9,269 1.9 8,832 2.1 3,857 1.1
Plant assets, net 265,161 53.3 245,794 57.3 215,773 61.5
Total assets $ 497,795 100 $ 429,134 100 $ 350,600 100
Liabilities and Equity
Accounts payable $ 122,711 24.7 $ 71,073 16.6 $ 47,205 13.5
Long-term notes payable
secured by mortgages
on plant assets 94,521 19 96,727 22.5 76,708 21.9
Common stock,
$10 par value 163,500 32.8 163,500 38.1 163,500 46.6
Retained earnings 117,063 23.5 97,834 22.8 63,187 18.0
Total liabilities and equity $497,795 100 $429,134 100 $350,600 100
Explanation:
a) Data and Calculations:
SIMON COMPANY
Balance Sheets
At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 29,076 $ 33,644 $ 34,015
Accounts receivable, net 85,123 60,680 47,668
Merchandise inventory 109,166 80,184 49,287
Prepaid expenses 9,269 8,832 3,857
Plant assets, net 265,161 245,794 215,773
Total assets $ 497,795 $ 429,134 $ 350,600
Liabilities and Equity
Accounts payable $ 122,711 $ 71,073 $ 47,205
Long-term notes payable
secured by mortgages
on plant assets 94,521 96,727 76,708
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 117,063 97,834 63,187
Total liabilities and equity $ 497,795 $ 429,134 $ 350,600
b) The computation of Simon's common size balance sheet enables the comparison and analysis of the relative percentage of each asset, liability, and equity account. The computation takes a line item and divides it by the value of total assets or total liabilities and equity, as the case may be. The resulting decimal value is multiplied by 100 to obtain the percentage.
