Simon Company's year-end balance sheets follow. Current YE 1 yr Ago 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-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 38,534 108,431 132,242 12,048 342,845 $ 634,100 $ 43, 294 $ 44,656 77,295 57,183 103, 151 62,149 11, 824 311,074 277,749 $ 546,638 $ 446,600 $ 154, 733 $ 91,458 $ 58,362 116,827 163,500 199,040 $ 634,100 126,984 98,699 163,500 163,500 164, 696 126,039 $ 546,638 $ 446,600 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your 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. Reg 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 2 Years Current Year 1 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 % % % Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 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-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 38,534 108, 431 132, 242 12,048 342,845 $ 634,100 $ 43,294 $ 44,656 77,295 57,183 103, 151 62,149 11,824 311,074 277,749 $546,638 $ 446,600 $ 154, 733 $ 91,458 $ 58,362 116,827 163,500 199,040 $ 634,100 126,984 98,699 163,500 163,500 164, 696 126,039 $ 546,638 $ 446,600 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. Reg 1 Req 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. Required information (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 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-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 24, 246 89,400 110, 500 7,808 187, 388 $ 419,342 $ 28,342 $ 29,824 62,400 51,200 82,000 54,000 7,440 3,314 181,320 169,062 $361, 502 $ 307, 400 $ 102,328 $ 59,872 $ 39,765 77,260 162,500 77,254 $ 419,342 81,483 66, 577 162,500 162,500 57,647 38, 558 $361,502 $ 307,400 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $ 545,145 $ 332,538 168,995 9,267 7,087 517,887 $ 27,258 1 Yr Ago $ 430,187 $ 279, 622 108,937 9,894 6,453 404,806 $ 25,381 $ 1.56 Earnings per share $ 1.68 (1-a) Compute days' sales uncollected. (1-6) For each ratio, determine if it improved or worsened in the current year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B For each ratio, determine if it improved or worsened in the current year. Days' sales uncollected