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, Current Year 1 Year Ago 2 Years Ago 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 $ 24,971 73,836 91,915 8,042 228, 749 $ 427,513 $ 28,599 52,628 69,545 7,739 210,035 $ 368,546 $ 29,511 39,745 43,611 3,279 184,954 $ 301,100 $ 106,451 79,569 163,500 77,993 $ 427,513 $ 60,416 86,461 162,500 59,169 $ 368,546 $ 38,950 65,878 163,500 32,772 $ 301,100 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? Complete this question by entering your answers in the tabs below. es Reg 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 Shoots December 31 Curront 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 % % % www Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate answers to 1 decimal place.) 2 Years Ago % % SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year 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 % % % % %