! 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 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 27,888 82,445 100,610 8,891 252,847 $ 33,251 56,477 76,138 8,643 232,975 $ 472,681 $ 407,484 $ 116,521 90,641 163,500 102,019 $ 68,865 93,721 163,500 81,398 $ 472,681 $ 407,484 For both the current year and one year ago, compute the following ratios: $ 34,304 44,366 49,695 3,773 214,362 $ 346,500 $ 46,653 78,874 162,500 58,473 $ 346,500 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?