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 $ 28,272 82, 744 97,974 8,837 251,960 $ 469,787 $ 33,647 $ 32,737 55,564 44,99 73,425 48,892 8,675 3,862 234, 278 211, 310 $ 484,989 $ 340,900 $ 115,807 8 67,759 $ 44,099 87,437 163,500 183, 843 $ 469,787 91,285 73,832 163,500 163,500 82,445 59,469 $ 484,989 $ 340,900 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? Complete this question by entering your answers in the tabs below. Reg 1 Req 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 96 96 96 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 96 96 96 96 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 9 Complete this question by entering your answers in the tabs below. 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. 3. Change in accounts receivable Change in merchandise inventory