Part 1 of 5 pom look H Pest Deferences Mc Graw Hil Check my work Simon Company's year-end balance sheets follow. At December 11 Current Year 1 Year Ago 2 Years Ago Assets C $ 29,300 $30,611 Accounts receivable, not 40,814 $25.640 75.822 96,267 0,259 228,714 Merchandise inventory Prepaid expenses 43,467 $1,940 30,715 0,027 214,608 $374,750 Plant assets, net 3,333 190,975 $ 309,200 Total assets $434,710 Liabilities and Equity Accounts payable $ 107,160 $44,599 Long-term notes payable 83,360 162,500 81,690 Common stock. $10 par value $ 40,406 67,650 163,500 37,444 85,331 163,500 41.320 Betained earnings Total liabilities and equity $434,710 1.374,750 # 309,200 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? Complete this question by entering your answers in the tabs below. 4 Part of 5 points ation HA Pin References Mc Graw Ain Required information CE MEC UNE LA FU your persemaye answers to 1 decimal place.) SMON COMPANY Common Se 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 payab Common stock. $10 par Retained earings Total Fabies and equity of 13 Next > Check my work Part 1 of 6 5 points ebook Hon Prim Rece Mc Graw Hill Complete this question by entering your answers in the tabs below. Req 1 and 3 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory