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 Current Yr 1 Yr Ago 2 Yrs Ago $ 27,362 $ 32,963 $ 33,657) 82,541 57,114 46,689 100,727 74,718 8,481 234,683 9,171 253,431 48,763 3,815. 210,476 $473,232 $ 407,959 $343,400 $ 115,478 $ 67,566 $ 44,876 90,747 163,500 103,507 $473,232 77,409 96,645 163,500 163,500 80,248 57,615 $ 407,959 $343,400 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? Complete this question by entering your answers in the tabs below.