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 $ 35,336 100, 367 127, 481 11,152 324,586 $ 598,922 $ 42,131 $ 43,017 73,007 56, 232 95,518 61,097 11,168 4,592 294,488 261,062 $ 516,312 $ 426,000 $ 144,658 $ 87,257 $ 56,232 113,723 119,939 96,970 163,500 163,500 163,500 177,041 145,616 109,298 $ 598,922 $ 516,312 $ 426,000 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