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 $ 34,814 102,939 Current Yr 1 Yr Ago 2 Yrs Ago $ 40,694 $ 42,818 71,933 58,232 93,154 60,801 11,006 4,900 297,023 265,749 128,144 11,324 318,799 $ 596,020 $ 513,810 $432,500 $143,957 $ 88,571 $ 56,519 113,172 115,813 98,450 163,500 163,500 163,500 175,391 145,926 114,031 $ 596,020 $ 513,810 $432,500 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