Xavier Company's year-end balance sheet follow (in thousands). Current At December 31 Year Prior Year Assets Cash. 55 50

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Xavier Company S Year End Balance Sheet Follow In Thousands Current At December 31 Year Prior Year Assets Cash 55 50 1 (118.32 KiB) Viewed 33 times

Xavier Company's year-end balance sheet follow (in thousands). Current At December 31 Year Prior Year Assets Cash. 55 50 Accounts receivable, net............. 10 20 5 10 1.5 2.1 Merchandise inventory.. Prepaid expenses...... Property, plant and equipment, net Total assets 60 55 131.5 137.1 24 26 Liabilities and Equity Accounts payable.. Long-term notes payable secured by mortgages on property, plant and equipment 30 40 20 20 Share capital, $10 par value. Retained earnings Total liabilities and equity.. 57.5 51.1 131.5 137.1 Required: i. Express the balance sheet in common-size percents; round percents to two decimals. (10 marks) ii. Assuming annual sales doesn't change over the two-year period, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? Explain why. (3 marks) iii. Compute the current ratio for both years. Did the current ratio improve or worsen over the two-year period? What is the implication of this change? (7 marks)