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, $18 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 48,723 71,971 $ 42,412 54,886 59,648 $ 35,184 98,974 123,184 11,338 315,968 $ 584,640 $ 148,487 111,011 163,500 161,642 92,308 18,698 288,308 $ 584,808 $ 82,621 114,761 163,500 143,118 4,712 258,350 $420,000 $ 55,994 90,035 162,580 111,471 $ 584,648 $ 584,000 $420,000 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. Assuming ennustustes have not changed in the last three peers, is the change in accounts receivable as a percentage ABBAorable or and Vordi 3. Accuming Annual sales meve not changed in the last three years, is the change in merchandise inventory as a percenters 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. Note: Do not round intermediate calculations and round your final 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 % % 56 56 % Req 2 and 3>