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 Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable $ 36,102 104,636 127,690 11,284 320,194 $ 599,906 $ 150,870 110,527 163,500 $ 41,373 73,850 95,675 18,643 295,619 $ 517,160 $ 84,778 115,378 162,500 154,504 175,009 $ 599,906 $ 517,160 Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 41,398 57,451 59,985 4,741 263,125 $ 426,700 $ 56,888 97,130 163,500 109,182 $ 426,700 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. 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 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 December 31 Current Year 1 Year Ago 2 Years Ago % 96 96 % 96 96 % % 96 Total liabilities and equity 100.0 % 100.0 % 100.0 %