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. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Current Year 1 Year Ago 2 Years Ago $ 24,382 72,828 91,568 8,172 224,730 80,861 162,500 72,271 $ 29,081 51,910 67,923 7,405 207,198 $ 363,517 $ 60,206 81,937 163,500 57,874 $ 421,680 $ 363,517 $ 31,536 39,987 44,790 3,435 192,552 $ 312,300 $ 40,399 70,399 163,500 38,002 $ 312,300 Prepaid expenses Plant assets, net Total assets Liabilities and Equity $ 421,680 Accounts payable $ 106,048 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: Exercise 17-6 (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 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? 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. Assets Cash SIMON COMPANY Common-Size Comparative Balance Sheets Accounts receivable, net Merchandise inventory December 31 Current Year 1 Year Ago 2 Years Ago % % % 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 > 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 total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory total assets favorable or unfavorable? 2. Change in accounts receivable 3. Change in merchandise inventory < Req 1 Req 2 and 3 >