Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. $ 34,657 At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 29,906 84,977 $ 33,586 61,175 Merchandise inventory 107,911 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 78,461 9,086 246,090 9,159 264,989 $ 496,942 $ 428,398 $ 123,739 Long-term notes payable Common stock, $10 par value Retained earnings 163,500 117,212 $ 73,847 101,487 163,500 89,564 Total liabilities and equity $ 496,942 $ 428,398 92,491 For both the current year and one year ago, compute the following ratios: 46,209 49,709 3,736 212,289 $ 346,600 $ 46,666 75,067 163,500 61,367 $ 346,600 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 tot 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 LAPICES LIC valance SHCELO COMO DIZE perceILS. DUHUL EUUTIVE MILENIAL CareuiativE answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Current Year 1 Year Ago 2 Years Ago % % Plant assets, net Total assets % % % Liabilities and Equity Accounts payable % % % Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % %