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 Current Year 1 Year Ago 2 Years Ago $ 34,947 102,299 128,622 11,367 55,595 61,040 4,824 270,185 $40,033 71,487 $ 42,556 93,520 10,401 315,083 295,178 $592,318 $510,619 $434,200 Liabilities and Equity Accounts payable $147,487 Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity 162,500 173,202 $592,318 142,656 $ 510,619 118,001 $434,200 109,129 $ 88,021 117,442 162,500 $ 56,741 95,958 163,500 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 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 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 2 and 3 >