exercise 13-6 ammon-size percents Simon Company's year-end balance sheets follow. (1) Express the balance sheets in common-size per- cents. Round percents to one decimal. (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) Is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Chapter 13 Analysis of Financial Statements 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 $ 31,800 89,500 112,500 10,700 278,500 $523,000 35,625 62,500 82,500 9.375 255,000 $445,000 $ 37,800 50,200 54,000 5,000 230,500 $377,500 $129,900 $ 75,250 $ 51,250 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. 98,500 163,500 131,100 $523,000 101,500 163,500 104,750 $445,000 83,500 163,500 79,250 $377,500