Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 29,957 85,938 $ 35,017 61,904 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 114,734 9,549 277,924 81,802 9,473 258,444 $ 518,102 $ 446,640 $ 131,588 96,429 163,500 126,585 $ 76,992 102,727 163,500 103,421 $ 518,102 $ 446,640 For both the current year and one year ago, compute the following ratios: $ 37,216 49,622 52,324 4,217 228,821 $ 372,200 $ 49,622 80,611 162,500 79,467 $ 372,200 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. (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 % % %