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-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 28, 250 81,067 100,907 8,737 255, 115 $ 474,076 1 Yr Ago 2 Yrs Ago $ 32,368 $ 32,715 56,644 44,510 75,607 47,882 8,754 3,598 235,313 208,495 $ 408,686 $ 337,200 $ 121,586 89, 126 163,500 99,864 $ 474,076 $ 68,377 $ 43,175 95,878 73,776 163,500 163,500 80,931 56,749 $ 408,686 $ 337,200 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? Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 05 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 1.01% % % Liabilities and Equity Accounts payable % % % Long term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabiities and equity % % % 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 A 2. Change in accounts receivable 3. Change in merchandise inventory