Simon Company's year-end balance sheets follow.

Required Information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,616 95,466 114,147 10, 295 294,810 $ 547,334 $ 38,125 65,397 84,672 10, 107 273, 539 $ 471,840 $ 40,095 51,982 55,834 4,368 241,01 $ 393,280 $ 132,198 103,928 162,500 148,798 $ 547,334 $ 78,944 188, 523 163,500 120,873 $ 471,840 $ 51,902 88,635 162,589 98,163 $ 393,280 For both the current year and one year ago, compute the following ratlos: Exercise 17-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 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? Reg 1 Reg 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 5.9% 96 % %6 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity 96 96 %6 % 96 %