Simon Company's year-end balance sheets follow. Check my wc Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total Jassets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Comon stock, $10 par value Retained earnings Total liabilities and equity $ 27, 202 78,074 99,125 8,590 234,629 $ 447,620 $ 29,944 $ 31,217 55,104 41,210 73,529 45,662 7,941 3,331 219,361 190,789 $ 385,879 5 312,200 $ 110,343 $ 66,518 $ 42,447 86,677 163,5ee 87,1ee $ 447,620 88,752 67,616 163,500 163,500 67,109 38,637 $385,879 $ 312,200 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? 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 % % % % % %