Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 34,069 $ 41,055 $ 41,105 Accounts receivable, net 93,742 69,691 55,354 Merchandise inventory 125,429 95,889 60,138 Prepaid expenses 11,311 10,561 4,613 Plant assets, net 325,746 295,991 253,990 Total assets $ 595,297 $ 513,137 $ 415,200 Liabilities and Equity Accounts payable $ 146,747 $ 89,330 $ 55,354 Longterm notes payable 111,916 120,394 89,006 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 173,134 139,963 108,340 Total liabilities and equity $ 595,297 $ 513,137 $ 415,200 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? Complete this question by entering your answers in the tabs below. Required information Complete this question by entering your answers in the tabs below. 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.) 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 Req 2and 3 > Required information Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 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? 2. Change in accounts receivable 3. Change in merchandise inventory Show IGSSA