Exercise 13-6 Common-size percents LO P2 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 secured by mortgages on plant assets. Common stock, $10 par value Retained earnings Total liabilities and equity ces Current Yr 1 Yr Ago 2 Yrs Ago $ 31,509 $ 36,831 $ 37,606 92,227 62,548 50,142 112,548 86,016 53,948 10,348 9,572 4,137 282,134 260,874 230,275 $ 528,766 $455,833 $376,100 $127,713 $78,576 $ 51,135 98,414 102,745 83,949 163,500 163,500 163,500 139,139 111,012 77.516 $528,766 $455,833 $376,100 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?