Required information {The following information applies to the questions displayed below} Simon Company's yearend balance sheets follow. at December 31 Current Year 1 Year Ago 2 'i'ears Ago Assets Cash 5 29,429 5 34,961 9 34,43? Accounts receivable, net 36,126 52,336 46,329 Merchandise inventory 193,931 ?5,46 4?,438 Prepaid expenses 9,42? 3,935 3,926 Plant assets, net 259,931 245,323 212,329 Total assets 3 438,993 $ 421, 546 $ 344,403 Liabilities and Equity Accounts payable 5 119,324 5 21,954- 9 45,996 Long-term notes payable 91,931 98,895 26,834 Cowman stock, 519 par value 193,599 162,599 162,599 Retained earnings 114,233 93,19? 69,929 Total liabilities and equity $ 438,993 E 421, 546 3 344,499 For both the current year and one year ago, compute the following ratios: 1. Expressihe 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 oftotal assets favorable or unfavorable? Req 1 Req 2 and 3 Express the balance sheets in common-size percents. Note: 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 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity