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 Current Year 1 Year Ago 2 Years Ago 294,749 $551,510 $ 33,190 $ 38,035 $.38,439 94,308 65,896 52,821 118,575 85,318 56,823 10,688 10,084 276,107 $ 475,440 $ 134,579 104,721 163,500 148,710 $ 81,153 108,258 163,500 122,529 $ 551,510 $ 475,440 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 13-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 4,402 243,715 $ 396,200 $52,298 85,809 163,500 94,593 $ 396,200 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-Bizs 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 % % %