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 $ 28,970 84,802 103,456 9,329 264,452 $ 491,009 $ 34,201 $ 34,921 59,260 47,032 75,958 51,101 9,156 3,998 244,709 219, 248 $ 423,284 $ 356, 300 $ 124,706 $ 70,820 $ 48,443 93,233 163,500 109,570 $ 491,009 96,382 77,955 163,500 163,500 92,582 66,402 $ 423,284 $ 356,300 1. Express the balance sheets in common-size percents. (Do not round intermediate calcul answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in account assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in mercha nante finnbin m inunkia w 2 Years Ago ook int SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 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 Retained earnings Total liabilities and equity ences Reg 1 Req 2 and 3 > Req 1 Req 2 and 3 Assuming annual sales have not changed in the last three years, is the change in accounts receivable assets favorable or unfavorable? Assuming annual sales have not changed in the last three years, is the change in merchandise invent total assets favorable or unfavorable? 2. 3. Change in accounts receivable Change in merchandise inventory