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 Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 158,577 Long-term notes payable Common stock, $10 par value Retained earnings 120,903 162,500 182,389 Total liabilities and equity $ 624,369 Current Year 1 Year Ago 2 Years Ago $ 36,101 107,835 135,582 12,219 332,632 $ 624,369 $ 43,921 74,601 102,563 11,303 305,861 $ 538,249 $ 91,874 122,559 163,500 160,316 $ 45,285 59,207 64,323 4,885 270,400 $ 444,100 $ 56,863 97,165 163,500 126,572 $ 444,100 $ 538,249 For both the current year and one year ago, compute the following ratios: 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 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. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) ! Required information Assets Cash SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago 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 > Required information 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 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 < Req 1 Req 2 and 3 >