[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 $ 26,026 75,432 $ 29,814 53,239 Merchandise inventory 96,739 $ 31,059 42,667 45,900 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 8,298 234,630 69,648 7,906 219,673 $ 380,280 3,486 193,788 $ 316,900 $ 441,125 $ 107,643 81,273 163,500 88,709 $ 62,339 89,214 163,500 65,227 $ 441,125 $ 380,280 $ 316,900 $ 40,994 69,335 162,500 44,071 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. 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