Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 82,750 103,012 9,376 256,285 56,091 77,941 8,500 236,804 At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 27,703 $ 33,704 $ 35,098 Accounts receivable, net 44,980 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 49,854 3,824 210,444 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 479,126 $ 115,723 90,076 $ 413,040 $ 69,804 95,949 163,500 83,787 162,500 110,827 $ 479,126 $ 413,040 For both the current year and one year ago, compute the following ratios: $ 344,200 $ 46,797 76,068 163,500 57,835 $ 344,200 Exercise 13-6 (Algo) Common-size percents LO P2 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 tota 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 t 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. 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 % % % Req 1 Req 2 and 3 > S