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. Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 32,789 94,071 119,484 10,559 304,449 $ 561,352 $ 139,777 108,700 163,500 149,375 $ 39,488 65,717 92,212 10,467 276,040 $ 483,924 $ 80,965 114,642 163,500 124,817 $ 561,352 $ 483,924 $ 39,924 53,232 58,433 4,436 255,475 5 411,500 $ 53,775 90,032 163,500 104,193 $ 411,500 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 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