Assets Cash $31,800 $35,625 $37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $523,000 $445,000 $377,500 Liabilities and Equity Accounts payable $129,900 $75,250 $51,250 Long-term notes payable 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $523,000 $445,000 $377,500 Required: 1. Express the balance sheets in common-size percents. Assets Cash Common-Size Comparative Balance Sheets December 31 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 Total liabilities and equity Current Year Year Ago 2 Years Ago 2 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total 3 assets favorable or unfavorable? 4 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of te 5 assets favorable or unfavorable? 6 7 2. Change in accounts receivable 83. Change in merchandise inventory 9