Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago 62,500 82,500 9,375 255,000 5,000 230,500 $ 377,500 Cash Accounts receivable, net $ 31,800 89,500 $ 35,625 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 112,500 10,700 278,500 $ 37,800 50,200 54,000 $ 523,000 $ 445,000 $ 129,900 Long-term notes payable $ 75,250 101,500 Common stock, $10 par value Retained earnings Total liabilities and equity 98,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 51,250 83,500 163,500 79,250 $ 377,500 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.