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 $ 30,847 85, 864 112,410 9,639 278,899 $ 517,659 $ 36,772 $ 37,181 60,602 49,574 82,558 52,807 9,098 4,131 257,236 224,587 $ 446,258 $ 368,280 $ 131,475 73,999 $ 48,116 95, 373 163,500 127,311 $ 517,659 101, 613 83,813 163,500 163,500 107,236 72,771 $ 446,258 $ 368, 2ee 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivab assets favorable or unfavorable? 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 Chec Reg 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 Change in merchandise inventory 3