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 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 $26.568 78,543 97,785 8.727 238,689 $ 450,312 $ 31,056 $32,347 54,891 43,556 69,662 45,018 8,315 3,559 224,276 199.920 5 388,200 $ 323,500 $ 115,492 $ 64,950 $42,275 84,659 163,500 86,661 $ 450,312 88,393 71,494 163,500 163,500 21357 46,231 5388,200 $323,500 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? Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final 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 96 % % Long-term notes payable secured by mortgages on plant assets Common stock, 510 par Retained earnings Total liabilities and equity 96 % %