Simon Company's year-end balance sheets follow Current Ye 1 YAO 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable secured by mortgages on plant assets Common stock, $10 par value retained earnings Total liabilities and equity $ 30,980 89,789 118,652 10,384 285,992 $ 535,796 $ 35,843 $ 38,483 64,665 51,814 B3,741 54,657 9,797 1,192 267,847 231,954 $.461,893 $ 381,100 $ 130,745 $ 79,621 $ 50,305 102,744 163,500 238,807 $ 535,796 104,111 85,065 163,500 163,500 114,661 82,230 $461,893 $ 381,100 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? Express the balance sheets in common-size percents. (Do not round intermediate 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 % % % % % Pavad 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