S 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 $ 613,176 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 154,208 116,430 162,500 180,038 Current Year 1 Year Ago 2 Years Ago $ 41,442 74,004 $ 43,173 $ 36,901 102,756 131,833 11,883 329,803 98,769 11,101 303,284 $ 528,600 163,500 156,298 58,146 63,802 4,942 270,437 $ 440,500 $ 57,565 99,298 163,500 120,137 $ 88,440 120,362 Total liabilities and equity $ 613,176 $ 528,600 $ 440,500 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 assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory assets favorable or unfavorable?