! Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 35,787 99,653 124,017 11,638 323,567 $ 594,662 115,150 162,500 164,499 $ 41,421 71,052 93,890 10,442 295,835 $ 512,640 $ 86,636 120,265 163,500 142,239 $ 41,870 57,518 59,449 4,699 263,664 $ 427,200 $ 55,826 92,523 162,500 116,351 Accounts payable $ 152,513 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 594,662 $ 512,640 $ 427,200 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. Req 1 Req 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 Assets Cash Accounts receivable, net Merchandise inventory December 31 Current Year 1 Year Ago 2 Years Ago % % 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 % % %