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 Current Year 1 Year Ago 2 Years Ago $ 32,700 56,103 $ 27,975 77,901 100,943 8,832 249,205 $ 464,856 $ 118,064 84,771 162,500 99,521 74,878 8,331 228,726 $ 400,738 $ 67,725 90,326 162,500 80,187 $ 32,088 44,081 46,026 3,565 201,640 $ 327,400 $ 44,081 73,079 162,500 47,740 Total liabilities and equity $ 464,856 $ 400,738 $ 327,400 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 S < Prev 2 3 4 7 of 7 Next > 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 1 Req 2 and 3 > < Prev 2 3 4 7 of 7 Next >