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 $ 25,835 77,171 $ 31,124 52,848 $ 30,221 72,686 97,989 8,659 237,170 $ 446,824 8,089 220,446 $ 385,193 $ 65,098 85,937 162,500 71,658 41,956 46,028 3,427 193,068 $ 314,700 $ 40,710 69,549 162,500 $ 113,484 84,843 163,500 84,997 41,941 $ 446,824 $ 385,193 $ 314,700 Accounts payable Long-term notes payable Retained earnings Common stock, $10 par value Total liabilities and equity 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?