2 Part 1 of 6 Required Information [The following Information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 0.42 points Skipped At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 25,451 Accounts receivable, net 73,028 90,892 8,032 233,978 79,478 163,500 80,989 $ 29,453 51,022 70,862 7,731 212,812 $ 371,880 $ 62,848 88,098 163,500 57,434 $ 431,381 $ 371,880 $ 31,294 41,316 44,446 3,409 189,435 $ 309,900 $ 41,316 67,803 163,500 37,281 $ 309,900 eBook Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 431,381 $ 107,414 Long-term notes payable Hint Common stock, $10 par value Retained earnings Total liabilities and equity Print For both the current year and one year ago, compute the following ratios: 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. 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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par Retained earnings December 31 Current Year 1 Year Ago 2 Years Ago % % % % %6 % % % % Total liabilities and equity % %6 96 Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 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? 2. Change in accounts receivable 3. Change in merchandise inventory Req 2 and 3 > unfavorable development. favorable development. Show less