Exercise 17-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago 70,453 55,915 93,099 58,948 10,354 4,753 294,9681 262,467 $ 34,442 $ 39,446 $ 41,517 101,839 126,775 10,867 315,728 $589,651 $ 148,291 $ 508,320 $ 423,600 $ 87,624 $ 55.915 108,637 163,500 113,406 90,807 163,500 163,500 169,223 143,790 113,378 $589,651 $508,320 $ 423,600 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?