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, sie par value Retained earnings Total liabilities and equity $ 32,479 96,987 121,943 10,565 294,881 $ 556,055 $ 38,349 $ 38,748 66,439 52,197 87,794 57,870 10,167 4,394 276,609 250, 291 $ 479,358 $ 403,500 $ 139,842 $ 79,391 $ 53,262 103,493 163,500 149,220 $ 556,055 111,355 89,174 163,500 163,500 125,112 97,554 $ 479,358 5 403,500 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 SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago Assets 2 Years Ago % % % 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 % % % % % % % % % Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of tou 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