Simon Company's year-end balance sheets follow Current Y 1 Yr Ato 2 YrsAo $ At December 31 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, 510 par value Hetained earnings Total liabilities and equity $28,646 31,365 106,477 9,133 259,909 $ 485,530 33,4855 34,531 56,840 46,962 76,659 48,539 9,053 3,914 242,523 214.854 418,568 $ 348,300 $ 122,186 $ 72,151 $ 46,962 38,541 163,500 99.157 77,056 163,500 163,500 3.22 60,4812 $410,500 $8,800 $ 485.530 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? Req1 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 Sure 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 earning Total liabilities and equity Complete this question by entering your answers in the tabs below. Reg 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 3. Change in merchandise inventory