Please answer the following questions

Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	34,391		$	40,200		$	42,726
Accounts receivable, net			102,667			71,758			55,840
Merchandise inventory			125,325			94,823			58,856
Prepaid expenses			11,407			10,658			4,841
Plant assets, net			309,116			285,066			265,037
Total assets		$	582,906		$	502,505		$	427,300
Liabilities and Equity
Accounts payable		$	143,692		$	86,622		$	57,532
Long-term notes payable secured by mortgages on plant assets			111,778			112,109			95,378
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			163,936			140,274			110,890
Total liabilities and equity		$	582,906		$	502,505		$	427,300

1. Express the balance sheets in common-size percent. (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?

Express the balance sheets in common-size percent. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)

Options for 2 and 3

• unfavorable development.
• favourable development.

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 % % % % % % Req 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 Change in merchandise inventory 3