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 $ 30,198 87,523 112,245 9,628 272,239 $ 511,833 $ 34,946 63,626 80,812 9,266 252,585 $441,235 $ 37,516 51,012 54,344 4,210 228, 118 $ 375,200 $ 123,623 94, 300 163,500 130,410 $ 511,833 $ 73,077 103,514 162,500 102,144 $ 441,235 $ 50,517 84,578 162,500 77,605 $ 375,200 For both the current year and one year ago, compute the following ratios: 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? 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 Current Year 1 Year Ago 2 Years Ago Assets Cash % % % Accounts receivable, not 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 Reg 2 and 3 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory