Simon Company's year-end balance sheets follow 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Yr $ 34,630 $ 40,078 42,596 55,107 61,702 4,780 287,560261,815 $ 581,132 $ 500,976 426,000 97,386 122, 445 10,931 315,740 70,137 92,681 10,520 Liabilities and Equity Accounts pavable Long-term notes payable secured by $ 141,808 $ 85,512$ 57,919 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 96,970 163,500 163,500 107,611 $ 581,132 $ 500,976 426,000 112,530 163,500 163,294 114,072 137,892 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? Express the balance sheets in common-size percents. (Do not round intermediate calculations and ro percentage answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current 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 Long-term notes payable secured by 0 0 mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity 0 0