Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,356 $ 42,229 $ 41,866 Accounts receivable, net 103,680 72,452 54, 163 Merchandise inventory 127,777 97,655 58,861 Prepaid expenses 11,406 10,976 4,698 Plant assets, net 323,096 294,201 259, 112 Total assets $600,315 $517,513 $418,700 Liabilities and Equity Accounts payable $152,468 $ 90,083 $ 54,163 Long-term notes payable secured by mortgages on plant assets 113,988 120, 218 90,682 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 170, 359 143,712 110, 355 Total liabilities and $600,315 $517,513 $418,700 equity 1. Express the balance sheets in common-size percents. (Do not round termed calculations and round your fi 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. Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current 1 Year 2 Years Year Ago Ago 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 Retained earnings Total liabilities and equity % 1% % Req 1 Req 2 and 3 > Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 34,356 $ 42,229 $ 41,866 Accounts receivable, net 103,680 72,452 54, 163 Merchandise inventory 127,777 97,655 58, 861 Prepaid expenses 11,406 10,976 4,698 Plant assets, net 323,096 294, 201 259, 112 Total assets $600,315 $517,513 $418,700 Liabilities and Equity Accounts payable $152,468 $ 90,083 $ 54,163 Long-term notes payable secured by mortgages on plant assets 113,988 120, 218 90,682 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 170, 359 143,712 110, 355 Total liabilities and $600,315 $517,513 $418,700 equity 1. Express the balance sheets in common-size percents. (Do not round intermediate calcul 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. Req 1 Reg 2 and 3 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? 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? Show less 2. Change in accounts receivable Change in merchandise inventory 3.