! 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 Current Year 1 Year Ago 2 Years Ago $ 30,019 $ 25,425 75,921 92,649 8,105 233,178 53,059 70,114 7,959 214,089 $ 375,240 Total assets Liabilities and Equity Accounts payable $ 435,278 $ 107,300 $ 64,050 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 82,651 162,500 82,827 87,168 163,500 60,522 $ 435,278 $ 375,240 $ 31,886 42,102 45,291 3,337 190,084 $ 312,700 $ 42,515 69,798 162,500 37,887 $ 312,700 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?