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. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash 6.0 % Accounts receivable, net 16.8 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par % % 1.9 54.3 100.0 % 100.0 % 100.0 % % % % Retained earnings Total liabilities and equity 100.0 % 100.0 % 100.0 % Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 42,429 73,530 $ 36,298 101,118 124,568 11,689 323,632 94,307 10,813 293,839 $ 514,918 $ 597,305 Accounts payable $ 150,216 $ 87,891 Long-term notes payable Common stock, $10 par value Retained earnings 112,293 162,500 172,296 Total liabilities and equity $ 597,305 $ 514,918 116,063 163,500 147,464 For both the current year and one year ago, compute the following ratios: $ 42,481 55,541 58,566 4,674 255,338 $ 416,600 $ 56,641 93,910 162,500 103,549 $ 416,600