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 Current Year 1 Year Ago 2 Years Ago $ 29,723 51,490 $ 26,198 72,953 95,469 8,437 232,278 71,511 7,723 214,842 $ 375,289 $ 435,335 Accounts payable $ 110,566 Long-term notes payable Common stock, $10 par value $ 62,790 87,180 163,500 61,819 Total liabilities and equity $ 435,335 $ 375,289 Retained earnings 84,298 163,500 76,971 For both the current year and one year ago, compute the following ratios: $ 31,587 42,116 44,409 3,544 194,244 $ 315,900 $ 41,699 69,814 162,500 41,887 $ 315,900 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. 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 % % % < Req 1 Req 2 and 3 > 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 < Req 1 Req 2 and 3 > Show less