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, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $36,383 104,425 132,5011 11,603 313.705 $ 591,697 $ 41,702 70,089 98.146 10,513 295,468 $ 516,118 $ 44,775 56,773 62,963 4,926 273,963 $ 44),400 $152,057 11),603 163,500 109459 $ 598,697 $ 87,224 121,001 163,500 144,313 $ 516,118 $ 5,50 99,951 162,500 123,591 $443,400 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? Required information Reg 1 Reg 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.) 2 Years Ago SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago Assets Cash % % Accounts receivable, not Merchandise inventory Prepaid expenses Plant assets, not Total assets Liabilities and Equity Accounts payable % 9 Long term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % Heu Req 2 and 3 > Required information Complete this question by entering your answers in the tabs below. Req 1 Reg 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? Show less 2. Change in accounts receivable 3 Change in merchandise inventory