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 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings: Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago $31,625 $ 38,476 $ 40,079 95,401 64,692 50,819 117,596 84,614 54,669 10,392 9,704 4,410 291,946 274,031 246,923 $546,960 $471,517 $396,900 $133,469 $78,890 $ 52,915 103,857 111,702 163,500 163,500 163,500 146,134 117,425 91,893 $546,968 $471,517 $396,900 88,592 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 Assets Cash December 31 Current 1 Year Year Ago 2 Years Ago % % % 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