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 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 35,414 104,673 127,773 11,179 315,255 $ 594,294 $ 40,576 71,725 91,936 18,866 297,219 $ 512,322 $ 41,446 55,888 59,448 4,685 253,193 $ 414,500 $ 146,499 113,962 163,500 170,333 $ 594,294 $ 88,314 117,834 163,500 142,674 $ 512,322 $ 56,355 93,437 163,500 101,208 $ 414,500 32 of HE Next > Merone A Client met amework Swed Help Save & Ext Submit Total liabilities and equity $ 594, 296 $512,322 5 414,500 For both the current year and one year ago, compute the following ratios 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. Regi Reg 2 and 3 Help Save Edt Submit Required information 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? 2 Change in accounts receivable 3. Change in merchandise inventory Saved Help Save LE Required information % % 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 % se % % RO Req 2 and 3 >