At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 33,185 Current Yr 1 Yr Ago 2 Yrs Ago $ 37,284 $ 39,226 93,380 67,225 52,301 85,349 55,150 9,688 4,358 271,214 241,265 118,582 10,583 290,352 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 $ 546,082 $ 470,760 $ 392,300 $ 135,974 104,717 163,500 141,891 $ 79,558 $51,784 108,275 163,500 119,427 89,299 163,500 87,717 $ 546,082 $470,760 $ 392,300 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? Assets SIMON COMPANY Common-Size Comparative Balance Sheets December 31 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 Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago % % % 900 % % % 900 % 10 % % % % %