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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 29,208 82,976 105,381 9,592 262,986 $ 490,143 $ 122,046 93,990 $ 33,803 59,747 79,733 8,785 240,469 $422,537 $ 72,837 98,155 162,500 89,045 163,500 110,607 $ 490,143 $ 422,537 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. $ 35,571 47,428 50,000 3,913 222,388 $ 359,300 $ 48,850 77,023 163,500 69,927 $ 359,300 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?