Help Save (The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow CH Current Year 1 Year ARO 2 Years 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 Common stock, $10 par value Retained earnings Total abilities and equity $ 35,842 100,826 128,050 11,429 319,436 $ 595,583 $ 41,485 73,318 93,086 10,782 294,761 $ 513,434 $ 39,891 55,929 60,756 4,706 254,118 $ 415,400 $ 146,817 114,209 162.500 172,052 $ 595,583 $ 85,035 114,547 162,500 151.352 $ 513,434 $ 54,284 89,967 163,500 102,549 $415,400 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents, 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? Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations 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 Common stock, $10 par Retained earnings Total liabilities and equity % % % S