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 Current Year 1 Year Ago 2 Years Ago $ 30,582 $ 31,244 42,492 43,919 $ 27,231 75,829 100,205 8,597 240,633 52,973 70,722 8,028 227,777 $ 390,082 $ 452,495 Accounts payable $ 110,418 Long-term notes payable Common stock, $10 par value Retained earnings 83,368 162,500 96,209 $ 67,242 89,719 163,500 69,621 Total liabilities and equity $ 452,495 $ 390,082 For both the current year and one year ago, compute the following ratios: 3,472 194,473 $ 315,600 $ 42,492 69,050 163,500 40,558 $ 315,600 Exercise 17-6 (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?