Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	28,462		$	32,944		$	34,323
Accounts receivable, net			81,684			57,081			44,849
Merchandise inventory			103,719			76,182			48,247
Prepaid expenses			9,076			8,391			3,776
Plant assets, net			250,013			233,121			215,505
Total assets		$	472,954		$	407,719		$	346,700
Liabilities and Equity
Accounts payable		$	120,121		$	68,215		$	47,137
Long-term notes payable secured by mortgages on plant assets			87,137			91,900			76,621
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			102,196			84,104			59,442
Total liabilities and equity		$	472,954		$	407,719		$	346,700

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.

• 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 Year		1 Year Ago		2 Years 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		%		%		%