4 20 points Required information [The following information applies to the questions displayed below.] 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 Current Year 1 Year Ago 2 Years Ago $ 35,480 47,306 50,376 $ 30,022 87,865 $ 33,716 62,014 107,256 81,152 8,851 244,323 $430,056 224,896 $362,000 9,289 264,433 3,942 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value. setained earnings Total liabilities and equity 5498,865 $124,217 95,662 $ 71,226 100,891 163,500 $ 48,740 79,202 162,500 71,558 163,500 115,486 $498,865 94,439 $430,056 $ 362,000 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? 4 Required information eq 1 keq and 3 20 points eBook Express the balance sheets in common-size percents. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal place. SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Print Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net References Total assets Liabilities and Equity Accounts payable Long-term notes payable. Common stock, $10 par Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago %