Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago $ 24,003 71,002 $ 28,925 49,606 $ 30,127 91,075 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable. Retained earnings Common stock, $10 par value $ 104,433 77,272 163,500 74,205 7,969 225,361 $419,410 68,226 7,745 207,058 $ 361,560 83,990 163,500 51,744 39,772 43,212 3,347 184,842 $ 301,300 $ 39,374 67,919. 163,500 30,507 $ 62,326 Total liabilities and equity $ 419,410 $ 361,560 $ 301,300 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 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 % 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, $10 par value Retained earnings Current Year 1 Year Ago 2 Years Ago $ 24,003 71,002 91,075 7,969 225,361 $419,410 $ 104,433 77,272 163,500 $ 28,925 49,606 68,226 7,745 207,058 $ 361,560 $ 62,326 83,990 163,500 51,744 $ 30,127 39,772 43,212 3,347 184,842 $ 301,300 $ 39,374 67,919 163,500 30,507 74,205 Total liabilities and equity $419,410 $ 361,560 $ 301,300 Teck my work 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 ssuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of otal assets favorable or unfavorable? ssuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage if total assets favorable or unfavorable? Change in accounts receivable Change in merchandise inventory