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 $ 30, 350 86,221 108,407 9,870 274,463 $ 509, 311 $ 34,422 $ 36,969 61,469 51,284 79,602 51,956 9,220 4,066 254, 348 232,925 $ 439,061 $ 377,200 $ 129,355 $ 74,201 $ 49,790 95,750 163,500 120,706 $ 509,311 99,974 83,361 163,500 163,500 101, 386 80,549 $ 439,061 $ 377,200 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 Reg 2 and 3 Reg 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your fina answers to 1 decimal place.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash % 170 90 % % % 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 % % 90 Req 2 and 3 > Ney assets favorable or unfavorable? Complete this question by entering your answers in the tabs below. Req 1 Req 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 3. Change in merchandise inventory Teg 2 and 3 unfavorable development. favourable development