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 Current Year 1 Year Ago 2 Years Ago $ 27,997 83,653 106,230 9,295 262,024 $489,199 $ 120,592 90,130 $ 33,063 57,270 78,019 $ 33,103 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 162,500 115,977 8,856 244,515 $ 421,723 $ 71,984 96,026 163,500 90,213 $ 489,199 $ 421,723 For both the current year and one year ago, compute the following ratios: Exercise 13-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 44,588 48,935 3,828 210,746 $ 341,200 $ 44,588 73,897 162,500 60,215 $ 341,200 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.