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 $ 26,652 76,458 101,087 8,758 247,999 $ 460,954 $ 31,790 $ 31, 192 56,745 42,438 73,514 46, 110 8,095 3,466 227,230 198, 294 $ 397,374 S 321,500 $ 65,813 $ 42,862 $ 114,778 88,393 163,500 94,283 $ 460,954 88,654 71,052 163,500 163,500 79,407 44,086 S 397,374 S 321,500 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? Req 1 Req 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.) 96 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 9 % Liabilities and Equity Accounts payable 96 % % Long-term notes payable secured by mortgages on plant assets Common stock. $10 par Retained earnings Total liabilities and equity 96 Reg 2 and 3 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 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 2. Change in accounts receivable Change in merchandise inventory 3.