7 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 2.22 points At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,121 90,826 109,762 10,092 274,877 $ 515, 678 $ 34,497 $ 36,305 63,482 50, 382 81,419 54,199 9,616 4,034 255,536 229, 280 $ 444,550 $ 374,200 eBook Hint $ 128,404 $ 76,632 $ 48,900 Print 96,947 163,500 126,827 $ 515,678 101,224 84,352 163,500 163,500 103,194 77,448 $ 444,550 $ 374,200 References 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. Reg 1 Reg 2 and 3