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 $ 30,296 $ 34,038 $ 36,159 87,808 107,186 59,567 46,339 81,099 50,353 9,025 3,940 246,046 217,809 9,378 263,871 $498,539 $ 429,775 $354,600 $122,895 $ 71,906 $ 47,743 92,788 95,883 79,150 163,500 163,500 163,500 119,356 $498,539 98,486 64,207 $429,775 $354,600 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.