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 $ 35, 148 106,027 128,082 11,319 327,310 $ 607,886 $ 41,504 $ 43,666 72,632 59,374 94,039 60,771 11,335 4,900 304,530 267,989 $ 524, 040 $ 436,700 $ 149,850 $ 91,220 $ 58,221 113, 140 163,500 181, 396 $ 607,886 118, 119 96,511 163,500 163,500 151,201 118,468 $ 524,040 $ 436,700 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 % 8.0 % 10.01% Accounts receivable, net 14.0 Merchandise inventory Prepaid expenses 1.9 2.1 Plant assets, net Total assets 100.0% 100.0 % 100.0 % 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 100.0% 100.0 % 100.0 % Req 1 Req 2 and 3 >