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 $ 34,161 98,037 122,843 89,624 10,893 10,174 302,507 284,437 $489,346 $ 567,641 $138,516 103,515 $37,973 67,138 $ 84,353 113,675 162,500 128,018 $ 41,203 56,603 58,503 4,624 259,467 $ 420,400 $ 55,493 93.837 162,500 163,500 162,110 $ 567,641 $489,346 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 108,570 $ 420,400 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.