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. Current Year 1 Year Ago 2 Years Ago $ 29,194 86,287 106,383 $ 32,773 59,718 9,494 258,549 $ 489,907 $ 124,427 90,260 78,132 8,869 242,842 $ 422,334 $ 35,546 46,457 49,976 3,832 219,689 $ 355,500 $ 45,987 79,351 163,500 Long-term notes payable Common stock, $10 par value 162,500 Retained earnings 112,720 $ 69,947 98,108 163,500 90,779 Total liabilities and equity $ 489,907 $ 422,334 $ 355,500 66,662 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. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal pla 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 % % % % % % % % % %