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 $ 436,670 Accounts payable $ 106,556 Long-term notes payable Common stock, $10 par value Retained earnings 80,452 162,500 87,162 Current Year 1 Year Ago 2 Years Ago $ 26,279 76,164 95,762 8,214 230,251 $ 30,115 51,648 69,641 8,142 216,894 $ 376,440 87,447 163,500 60,602 $ 30,746 41,822 45,436 3,485 192,211 $ 313,700 $ 42,651 70,021 162,500 38,528 $ 64,891 Total liabilities and equity $ 436,670 $ 376,440 $ 313,700 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash Accounts receivable, net Merchandise inventory % % 96 Prepaid expenses Plant assets, net Total assets % % 96 Liabilities and Equity Accounts payable % % % Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % < Req 1 Req 2 and 3