Simon Company's year-end balance sheets follow. 1 Yr Ago At December 31 2 Yrs Ago Current Yr Assets Cash 33,620 99,370 120,087 10,398 300,711 40,077 $ 70,134 40,936 54,581 58,135 4,548 251,200 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89,078 10,214 276,864 486,367 409,400 564,186 Total assets Liabilities and Equity Accounts payable 137,673 82,196 $ 55,122 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 89,573 163,500 101,205 105,006 163,500 158,007 110,746 163,500 129,925 Total liabilities and equity 486,367 $ 409,400 564,186 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? Req 2 and 3 Req 1 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 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 mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity Req 2 and 3> Req1 96 Req 1 Req 2 and 3 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? 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 Req 1 Req 2 and 3>