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, not 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 $ 28,789 84,822 185,642 9,155 249,519 $477,047 $ 32,900 57,575 75,328 8,463 236,989 $ 411,247 $35,313 45,699 49,161 3,778 215,757 $ 349,780 $117,597 86,994 162,500 109,956 $ 70,196 93,641 162,500 84,910 $ 477,847 $ 411,247 For both the current year and one year ago, compute the following ratios: $ 44,776 78,057 163,500 63,367 $ 349,780 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? 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 %