Exercise 17-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow, Current YE Ye Ago 2 TER Aga 46 At December Assets Canh Accounts receivable, net Merchandise inventory Prepaid expenses Plant anneta, net Total aasta Liabilities and Aquity Accounts payable Long-term notes payable secured by mortgages on plant assets Connon stock, $10 par value Retained marning $ 24,790 74,071 93,130 8,230 232, 942 $ 433,164 $ 30,770 $ 29,587 51,756 40,263 69,082 43,750 7.763 3,321 214,046 191, 179 $ 373,417 $ 308,100 $ 110,015 $ 64,370 $ 39,056 79.806 163,500 79,843 $ 433,164 85,027 66,047 163,500 163,500 60,520 38,697 $ 373,417 9 308,100 Total liabilities and equity 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 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 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