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 Total liabilities and equity Current Year 1 Year Ago 2 Years Ago. $ 34,501 59,157 $ 34,882 46,039 $ 30,112 88,138 109,731 9,697 267,644 $ 505,322 $ 128,342 94,051 162,500 120,429 79,784 8,965 253,215 $ 435,622 $ 72,148 98,189 162,500 102,785 $ 505,322 $ 435,622 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 52,054 3,954 218,971 $ 355,900 $ 45,569 77,867 163,500 68,964 $ 355,900 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. 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 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses December 31 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 % %