Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets tiabilities 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 $ 33,394 95,828 118, 076 10,860 302,239 $ 560, 397 39,421 $ 40,263 68,310 55,852 86,692 58,334 10,044 4,609 278,634 251,742 $ 483, 101 $ 410, see $ 135, 353 $ 79,195 $ 55,852 184,301 163,5ee 152, 243 $ 560, 397 108,891 163,500 131,515 $ 483, 1e1 92,603 163,500 98,845 $ 410,800 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-Sire Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash %6 % % Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net %% % 96 %6 96 % Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, S10 par Retained earnings Total liabilities and equity % 96 96 Req 2 and 3 > Reg 1 Reg 2 and 3 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? 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 Change in merchandise inventory 3.