Simon Company's year-end balance sheets follow. Current Yn 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 $ 28, 241 84, 356 105,011 9,373 261, 444 $ 488,425 $ 32,674 $ 34,737 59,537 45,408 79,453 49,825 9,019 3,822 240,373 210,208 $ 421,056 $ 344,000 $ 119,185 $ 71,158 $ 44,500 92,742 163,500 112 998 $ 488,425 97,811 76,784 163,500 163,500 88,587 59,216 $ 421,056 $ 344,000 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? 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 secured by mortgages on plant assets Common stock. $10 par Retained earnings Total liabilities and equity % % % % %