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 51,780 $ 25,062 71,185 $ 29,003 66,391 7,536 $ 30,211 41,112 43,780 3,564 211,484 195,933 $314,600 90,415 7,829 230,294 $ 424,785 $ 107,887 78,262 163,500 75,136 $ 366,194 $ 63,125 81,698 162,500 58,871 $ 424,785 $ 366,194 For both the current year and one year ago, compute the following ratios: $ 42,358 68,136 163,500 40,606 $ 314,600 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?