[The following information applies to the questions displayed below.] 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 Total liabilities and equity Current Year 1 Year Ago- 2 Years Ago $ 28,175 82, 469 $ 34,313 101, 656 9,073 251, 445 $472,818 $ 120,086 $ 32,282 58,776 77,669 8,731 230, 144 $ 407,602 $ 68, 885 44, 836 49, 217 3,736 214.498 $ 346, 600 $ 45, 751 75, 833 162,500 62,516 88, 890 94, 686 163, 500 163, 500 100, 342 80, 531 $ 472,818 $ 407,602 $ 346,600 For both the current year and one year ago, compute the Exercise 17-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. following ratios: 2 Accuminn annual sales have not changed in the last three years is the change in accounts receivabl ces 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 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % % 0 % % % % % Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 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? 2. Change in accounts receivable 3. Change in merchandise inventory Show less A