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 $ 30,442 88,230 $ 34,527 59,806 $ 36,333 46,069 51,092 107,638 9,706 274,842 $510,858 $ 125,932 96,041 82,288 9,526 254,248 $ 440,395 $ 75,915 101,291 162,500. 100,689 163,500 125,385 $510,858 $ 440,395 4,037 222,269 $ 359,800 $ 47,019 77,130 162,500 73,151 $359,800 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? Hint accate tavaranie or untaunranio Required information Complete this question by entering your answers in the taps DeIOW. Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentag 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 % % % Print Plant assets, net Total assets % % % eferences Liabilities and Equity Accounts payable % % % Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % Reg 1 Reg 2 and 3> ces assets favorable or unfavorable? percentage of tota 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of te assets favorable or unfavorable? 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 Show less A