Exercise 13-6 Common-size percents LO P2 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 $ 33, 115 97,917 123, 111 10,556 302, 243 $ 566,942 $ 38,708 $ 39,914 69,108 52,676 89,513 59,587 10,572 4,616 280,842 254,607 $ 488,743 $ 411,400 $ 141, 169 $ 80,946 $ 54,305 107,651 163,500 154,622 $ 566,942 113,535 88,192 163,500 163,500 130,762 105,403 $ 488,743 $ 411,400 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