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 $ 36,258 $ 42,383 104,026 133,462 11,440 335,568 $ 620,754 $ 43,283 74,919 56,556 98,010 11,463 388,358 $ 535,133 $ 90,437 121,850 163,500 159,346 Accounts payable Long-term notes payable Common stock, $10 par value $ 154,568 117,869 162,500 185,817 Total liabilities and equity $ 620,754 $ 535,133 Retained earnings 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. 62,082 4,857 270,422 $437,200 $ 58,865 95,655 162,500 120, 180 $437,200 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?