Simon Company's year-end balance sheets follow. Current Yr At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-tern notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31, 106 92,914 113,352 10, 017 290,589 $ 537,978 1 Yr Ago 2 Yrs Ago $ 37,473 $ 36,761 63,630 49,515 86,656 53,266 9,642 4,043 266,373 235,315 $ 463,774 $ 378,900 $ 78,378 $ 51,015 $ 136,636 101, 140 163,500 136,702 $ 537,978 183,468 86,249 163,500 163,500 118,428 78,136 $ 463,774 $ 378,900 25 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