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 Current Yr 1 Yr Ago 2 Yrs Ago $ 30,027 $ 36,151 $ 37,292 87,896 60,808 47,773 109,419 82,788 54,014 9,670 9,213 4,144 271,912 249,768 226,077 $ 508,924 $ 438,728 $ 369,300 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 122,920 $ 75,628 $ 47,773 92,807 163,500 129,697 97,880 83,248 163,500 163,500 101,720 74,779 $ 508,924 $ 438,728 $369,300 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. Req 1 Req 2 and 3 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 1 Req 2 and 3 >