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 $ 32,873 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 94,332 119,791 10,481 294,173 $ 37,664 65,913 38,841 53,881 $ 551,650 $ 140,108 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 551,650 $ 475,560 $ 396,300 103,710 163,500 144,332 87,099 9,687 275,197 $ 475,560 $ 79,566 110,473 162,500 123,021 4,272 241,906 $ 396,300 $ 52,835 85,831 162,500 95,134 57,400 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?