Required information (The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago 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 $ 24,873 70, 632 92,468 8,333 229,521 $ 425, 827 $ 29,955 51,393 67,912 7,632 210,200 $ 367,092 $ 30,285 40, 788 43,878 3,433 190,616 $ 309,000 $ 104,971 81,657 163,500 75,699 $ 425,827 $ 63,279 86,964 162,500 54,349 $ 367,092 $ 41, 196 68,972 162,500 36, 332 $ 309,000 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? Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and percentage answers to 1 decimal place.) 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 Common stock, $10 par Retained earnings Total liabilities and equity % % % Reg 1 Req 2 and 3 >