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 $ 28,717 85,728 106,740 9,248 256,296 $ 486,729 $ 122,407 88,760 $ 34,575 59,918 78,401 8,811 237,889 $ 419,594 $ 72,330 94,576 163,500 89,188 $ 34,274 46,155 50,144 3,808 211,819 $ 346,200 $ 45,698 76,510 162,500 163,500 112,062 61,492 $ 486,729 $ 419,594 $ 346,200 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?