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 Tatal assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, sie par value Retained earnings Total liabilities and equity $ 33,892 92,503 117,512 10.80 382,995 $ 557,713 $ 37, 389 $ 38,498 68,656 51,331 86,277 55,220 18,197 4.402 278, 348 243,344 $ 489,787 $ 392,800 $ 141,648 $ 83,691 $ 51,331 186,947 163, see 145,618 $ 557,713 188,369 85,073 163, see 163,5ee 125,227 92,896 $ 480,787 $ 392,892 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 receiveble as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three yesrs, is the change in merchandise inventory ss percentage of total assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. Req1 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.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Abaete Cash % %% % % Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Llabilities and Equity Accounts payable Long-term nates payable secured by mortgages an plant assets Common stock, S10 par Retained earnings Total liabilities and equity % Reg Req 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 3. Change in merchandise inventory