omework Saved Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yes 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 $ 32,286 96,410 116,464 10,817 296,771 $ 552,748 $ 38,502 $ 40,106 66,044 54,004 89,035 56,387 10,107 4,500 272,819 246,103 $ 476,507 $ 401,100 $ 133,505 $ 78,919 $ 51,886 107,034 163,500 148, 709 $ 552,748 108,501 88,643 163,500 163,500 125,587 97.071 $ 476,507 $ 401, 100 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final pe 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 assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise Inventory as a percentas 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 Intermediatelculations and round your final percentage 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 % % % % % % Roq Req 2 and 3 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