Check my work 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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 35,499 $ 43,613 $ 42,369 104,988 75,581 132,002 99,875 11,315 330,161 $ 613,965 10,781 299,430 $ 529,280 55,915 62,011 4,948 271,457 $ 436,700 $ 58,797 96,511 162,500 118,892 $ 151,349 116,580 162,500 183,536 $ 91,237 122,952 $ 613,965 $ 529,280 $ 436,700 162,500 152,591 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? Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your fir answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago. Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable l ass % % % % % % % umer e+Int 500 100 Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % ent ye Reg1 Req 2 and 3 > 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. 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 per 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 total assets favorable or unfavorable? 2. Change in accounts receivable 3. Change in merchandise inventory il asse imera e+Inte 500