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 61,379 $29,417 86,113 $ 34,730 $ 35,461 106,127 77,928 49,211 51,382 9,379 8,756 . 267,564 $ 498,600 $124,151 95,612 247,035 $429,828 $ 71,915 97,872 4,101 225,345 $365,500 $48,720 162,500 116,337 162,500 97,541 $498,600 $ 429,828 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 79,160 162,500 75,112 $ 365,500 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?