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 Current Year 1 Year Ago 2 Years Ago $ 42,754 $ 44,976 57,029 $ 36,946 104,938 137,325 11,660 335,328 $ 626,197 74,820 101,865 11,450 308,936 $ 539,825 $ 92,143 127,885 162,500 157,297 Accounts payable $ 154,364 Long-term notes payable Common stock, $10 par value Retained earnings 114,193 163,500 194,140 Total liabilities and equity $ 626,197 $ 539,825 For both the current year and one year ago, compute the following ratios: 65,144 4,899 273,352 $ 445,400 $ 59,969 95,480 163,500 126,451 $ 445,400 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.) 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 >