Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 28,144 $ 33,555 $ 33,596 Accounts receivable, net 80,753 57,570 44,356 Merchandise inventory 103,583 78,357 46,771 Prepaid expenses 8,882 8,463 3,696 Plant assets, net 255,650 233,272 204,281 Total assets $ 477,012 $ 411,217 $ 332,700 Liabilities and Equity Accounts payable $ 118,776 $ 68,106 $ 43,038 Long-term notes payable secured by mortgages on plant assets 90,575 96,472 74,262 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 104,161 83,139 51,900 Total liabilities and equity $ 477,012 $ 411,217 $ 332,700 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?