Simon Company's year-end balance sheets follow, Current Year 1 Year ago 2 Years Ago At December 31 Assets Cash Accounts receivable, not Merchandise inventory Prepaid expenses Plant annets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock. $10 par value Retained earninga Total liabilities and equity $ 33,010 93,798 120,292 10,630 290.799 $ 548,529 $ 37,451 67,526 85,731 9,732 272.430 $ 472,870 $ 38,614 54,670 57,098 4,467 247,251 $ 402,100 $ 137,950 104,155 163,500 242,924 $ 548,529 $ 81,513 106,585 162,500 122,272 5.472,870 $ 53,608 87.087 162,500 98.905 $ 402,100 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 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 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, 510 par Retained earnings Total liabilities and equity % Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 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? Show less 2. Change in accounts receivable 3. Change in merchandise inventory