Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 24,976 71,664 $ 28,903 $ 30,703 51,091 93,745 7,802 225,135 $ 423,322 $ 103,299 $ 60,440 Long-term notes payable 77,197 Common stock, $10 par value Retained earnings Total liabilities and equity 163,500 79,326 $ 423,322 $ 364,933 $ 301,100 68,188 7,510 209,241 $ 364,933 83,935 162,500 58,058 40,143 43,611 3,345 183,298 $ 301,100 $ 38,950 67,209 163,500 31,441 For both the current year and one year ago, compute the following ratios: Exercise 13-6 (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? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Express the balance sheets in common-size percents. S Drov 7 8 of 9 Next