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 Current Year 1 Year Ago 2 Years Ago $ 26,966 78,946 $ 32,158 57,390 98,267 8,684 248,808 L $ 461,671 Common stock, $10 par value Retained earnings Total liabilities and equity $ 117,255 87,662 162,500 94,254 75,101 8,358 224,985 $ 397,992 $ 68,606 93,369 162,500 73,517 $ 461,671 $ 397,992 For both the current year and one year ago, compute the following ratios: $ 31,878 42,504 47,096 3,577 196,945 $ 322,000 $ 42,504 70,450 162,500 46,546 $ 322,000 For both the current year and one year ago, compute the following ratios: 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 9 < Prev 23 of 16 Next > Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 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? 2. Change in accounts receivable 3. Change in merchandise inventory