Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 29,710 34,378 $ 37,637 Accounts receivable, net 86,979 60,775 47,260 110,453 79,498 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 9,761 271,747 9,392 254,448 $ 508,650 $ 438,491 $ 126,654 $ 75,587 Long-term notes payable 95,626 Common stock, $10 par value 163,500 Retained earnings 122,870 Total liabilities and equity $ 508,650 $ 438,491 99,844 163,500 99,560 For both the current year and one year ago, compute the following ratios: 50,840 4,141 229,222 $ 369,100 $ 49,696 83,203 163,500 72,701 $ 369,100 Exercise 13-6 (Algo) Common-size percents LO P2 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?