Question

Exercise 17-6 Common-size percents LO P2

Simon Company's year-end balance sheets

At December 31 2017 2016 2015 Assets Cash $36,867 $42,664 $44,006 Accounts receivable, net 110,059 75,415 57,512 Merchandise inventory 131,660 102,646 63,119 Prepaid expenses 12,229 11,652 4,890 Plant assets, net 334,056 306,305 270,573 Total assets $624,871 $538,682 $440,100 Liabilities and Equity Accounts payable $157,149 $89,217 $59,255 Long-term notes payable secured by mortgages on plant assets 119,825 125,136 100,180 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 184,397 160,829 117,165 Total liabilities and equity $624,871 $538,682 $440,100

Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)

Answer 1

• All working forms part of the answer
• Common Size balance Sheet

	As at 31 Dec 2017			As at 31 Dec 2016			As at 31 Dec 2015
ASSETS	Amount	Percent	Working	Amount	Percent	Working	Amount	Percent	Working
Cash	$               36,867	5.9%	[ ($ 36867 / $ 624871 ) x 100	$                 42,664	7.9%	[ ($ 42664 / $ 538682 ) x 100	$                44,006	10.0%	[ ($ 44006 / $ 440100 ) x 100
Accounts receivables, net	$            110,059	17.6%	[ ($ 110059 / $ 624871 ) x 100	$                 75,415	14.0%	[ ($ 75415 / $ 538682 ) x 100	$                57,512	13.1%	[ ($ 57512 / $ 440100 ) x 100
Merchandise Inventory	$            131,660	21.1%	[ ($ 131660 / $ 624871 ) x 100	$               102,646	19.1%	[ ($ 102646 / $ 538682 ) x 100	$                63,119	14.3%	[ ($ 63119 / $ 440100 ) x 100
Prepaid Expenses	$               12,229	2.0%	[ ($ 12229 / $ 624871 ) x 100	$                 11,652	2.2%	[ ($ 11652 / $ 538682 ) x 100	$                  4,890	1.1%	[ ($ 4890 / $ 440100 ) x 100
Plant Assets, net	$            334,056	53.5%	[ ($ 334056 / $ 624871 ) x 100	$               306,305	56.9%	[ ($ 306305 / $ 538682 ) x 100	$              270,573	61.5%	[ ($ 270573 / $ 440100 ) x 100
Total Assets	$            624,871	100.0%	[ ($ 624871 / $ 624871 ) x 100	$               538,682	100.0%	[ ($ 538682 / $ 538682 ) x 100	$              440,100	100.0%	[ ($ 440100 / $ 440100 ) x 100
						[ ($ / $ 538682 ) x 100
LIABILITIES & EQUITY						[ ($ / $ 538682 ) x 100
Accounts Payable	$            157,149	25.1%	[ ($ 157149 / $ 624871 ) x 100	$                 89,217	16.6%	[ ($ 89217 / $ 538682 ) x 100	$                59,255	13.5%	[ ($ 59255 / $ 440100 ) x 100
Long Term Notes Payable	$            119,825	19.2%	[ ($ 119825 / $ 624871 ) x 100	$               125,136	23.2%	[ ($ 125136 / $ 538682 ) x 100	$              100,180	22.8%	[ ($ 100180 / $ 440100 ) x 100
Common Stock	$            163,500	26.2%	[ ($ 163500 / $ 624871 ) x 100	$               163,500	30.4%	[ ($ 163500 / $ 538682 ) x 100	$              163,500	37.2%	[ ($ 163500 / $ 440100 ) x 100
Retained Earnings	$            184,397	29.5%	[ ($ 184397 / $ 624871 ) x 100	$               160,829	29.9%	[ ($ 160829 / $ 538682 ) x 100	$              117,165	26.6%	[ ($ 117165 / $ 440100 ) x 100
Total Liabilities & Equity	$            624,871	100.0%	[ ($ 624871 / $ 624871 ) x 100	$               538,682	100.0%	[ ($ 538682 / $ 538682 ) x 100	$              440,100	100.0%	[ ($ 440100 / $ 440100 ) x 100