Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow. Sales Cost of goods sold Total expenses Common-Size Percents Current Yr1 Yr Ago 2 Yrs Ago 100.0% 100.0% 100.0% 63.3 61.1 57.1 14.3 13.8 14.1 Trend Percents Current Yr 1 Yr Ago 104.3% 103.1% 115.6 110.3 105.8 100.9 2 Yrs Ago 100.0% 100.0 100.0 Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period? Complete this question by entering your answers in the tabs below. Net Income Change in Net Income Determine the net income for the following years. (Enter all amounts as positive values.) Current Yr 1 Yr Ago Sales Cost of Goods Sold Total Expenses Net Income 2 Yrs Ago $ 100,000 57,100 14,100 $ 28,800 Net Income Change in Net Income > Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 $ 26,621 73,375 97,962 8,657 235, 749 $ 442,364 $ 29,593 $ 32, 415 5 3,923 42,372 70,549 45, 126 8,008 3,425 219,275 197,662 $ 381,348 $ 321,000 $ 107,946 $ 65,092 $ 42,796 84,828 163,500 86,090 $ 442,364 86,833 69,522 163,500 163,500 65,923 45, 182 $ 381,348 $ 321,000 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. Req 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage 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 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity Reg 1 Req 2 and 3 > Req 1 Req 2 and 3 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? 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? Show less A 2. 3. Change in accounts receivable Change in merchandise inventory Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 $ 26,621 73,375 97,962 8,657 235, 749 $ 442,364 $ 29,593 $ 32, 415 5 3,923 42,372 70,549 45, 126 8,008 3,425 219,275 197,662 $ 381,348 $ 321,000 $ 107,946 $ 65,092 $ 42,796 84,828 163,500 86,090 $ 442,364 86,833 69,522 163,500 163,500 65,923 45, 182 $ 381,348 $ 321,000 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. Req 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage 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 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity Reg 1 Req 2 and 3 > Req 1 Req 2 and 3 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? 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? Show less A 2. 3. Change in accounts receivable Change in merchandise inventory