Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 32,369 92,895 116,798 10,015 285.792 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 $ 37,465 $ 37,106 62,968 49,985 87,496 55,966 9,932 4,165 265, 819 239,178 $ 463,689 $ 386,400 $ 537.869 $ 129,911 $ 77,578 $ 52,025 99,097 163,500 145, 361 $ 537,869 107,713 163,500 114,889 $ 463,680 87,102 163,500 83,773 $ 386,480 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 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 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