Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Daccounts payable Long-ters notes payable Common stock, 510 par value Retained earnings Total liabilities and equity $ 27,888 80,011 183,678 9,253 256,620 $ 477,450 $ 33,257 58,776 76,145 8,816 234,601 $ 411,595 $ 33,957 45,724 48,705 3,81e 207,404 $ 339,600 $ 120,074 88,863 162,500 106,013 5.477,450 5 68,864 95,614 162,500 84.617 $ 411,595 $ 45,724 75,852 163,500 55,324 $ 339,600 1. Express the balance sheets in common size percents. 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 Common stock, $10 par Retained earnings Total liabilities and equity % % %