Simon Company's year end balance sheets follow, Current Yr 1 Yr App 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Peepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Comon stock, $10 par value Retained earnings Total liabilities and equity $ 35,084 100,668 130,406 11,185 312.03 $ 594,646 $ 40,600 $ 44,036 70, 332 57,551 96,733 60,561 10,442 4,941 294,519 273,211 $ 512,626 $ 140,400 $ 146,586 $ 84,035 5 55,970 111,193 163,500 122,2267 $ 594,646 119,083 163,500 146,008 $ 512,626 99,275 163,500 120,655 440,400 1. Express the balance sheets in common-size percents (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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. Reg 1 Rec 2 and 3 SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago % 79 % % 5.8 16.9 21.9 9.9 13.0 13.7 18.8 2.0 13.7 11 18 OOOO 533 100 0 574 100.0 62.0 100.0 % % Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity 24.6 % 16.3 % 12.9 % 18.7 23.2 22.5 274 29.0 100.0 31.8 28.4 1000 371 27.3 100.0 % %