17 5 oints eBook Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Liabilities and Equity Total assets Hint Pent References Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity Current Ye 1 Ye Ago 2 Yes Ago $ 36,408 $ 42,132 $ 42,184 103,412 135,328 72,987 97,431 10,948 308,476 55,677 59,894 4,829 267,816 11,490 330,452 $ 617,090 $ 531,974 $ 430,400 $88,106 $ 57,949 $ 155,192 112,533 122,354 97,972 163,500 185,865 163,500 163,500 158,014 110,979 $ 617,090 $ 531,974 $ 430,400 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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.