Exercise 13-b Common-size percents 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 $ 28,285 81,158 103,072 9,018 257,872 $ 479,405 $ 33,724 $ 34,778 56,702 45, 461 77,986 48,416 8,939 3,751 235,929 211,994 $ 413,280 $ 344,400 $ 121,759 $ 69,146 $ 45,006 91,931 163,500 102, 215 $ 479,405 95,054 76,112 163,500 163,500 85,580 59,782 $ 413,280 $ 344,400 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, 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. Req 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and rour answers to 1 decimal place.) 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 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 % % % % % % Assuming annual sales have not changed in the last three years, is the change in accounts assets favorable or unfavorable? Assuming annual sales have not changed in the last three years, is the change in merchand total assets favorable or unfavorable? 2. Change in accounts receivable Change in merchandise inventory 3