Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, bet Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 36,825 107,799 132,853 12,215 334,469 $ 624,161 $ 43,907 76,836 99,543 11,525 306,259 $ 538,070 $ 43,956 58,027 62,423 4,691 270,503 $ 439,600 $ 152,308 116,169 163,500 192,184 $ 624,161 $ 88,206 120,043 163,500 166,321 $ 538,070 $ 59, 768 100,066 163,500 116,266 $ 439, 600 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common size percerits. 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 ar 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. Reg 1 Reg 2 and a