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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 27, 133 79, 412 97,906 8,652 237, 766 $ 450, 869 $ 31, 716 $ 33,028 54,415 42,327 71, 187 45.074 7,999 3,527 223, 363 199, 944 $ 388,680 $ 323, 900 $ 114,512 83,068 162,500 90, 789 $ 450, 869 $ 67,001 $ 41, 900 89, 396 70, 866 163, 500 162,500 68, 783 48, 534 $ 388, 680 $ 323, 900 = 1. Express the balance sheets in common-size percents. 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 calculat percentage answers to 1 decimal place.) K 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 Common stock, $10 par Retained earnings Total liabilities and equity % % ces Reg 2 and 3 > 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,133 79,412 97,906 8,652 237, 766 $ 450,869 $ 31, 716 $ 33,028 54, 415 42,327 71, 187 45 074 7,999 3527 223, 363 199, 944 $ 388,680 $ 323, 900 $ 114,512 83,068 162,500 90, 789 $ 450, 869 $ 67,001 $ 41900 89 396 70, 866 163) 500 162,500 68783 48, 634 $ 388, 680$ 323) 900 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period