t1 of 5 ts eBook Hint Print ferences Simon Company's year-end balance sheets follow. 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 i Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 28,257 81,898 104,022 9,564 264,968 $ 488,709 $ 119,255 93,715 162,500 113,239 $ 488,709 $ 34,041 60,162 $ 34,417 45,434 76,382 8,759 241,957 $421,301 $ 71,912 97,868 162,500 89,021 $421,301 For both the current year and one year ago, compute the following ratios: Exercise 13-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 47,899 3,900 212,550 $ 344,200 $ 44,980 74,547 162,500 62,173 $ 344,200 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?