[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 Current Year 1 Year Ago 2 Years Ago $ 33,935 $ 38,501 99,319 $ 38,937 68,737 117,601 10,928 302,115 $ 563,898 91,731 9,902 277,248 $ 486,119 $ 82,154 114,044 162,500 127,421 $ 137,602 Long-term notes payable Common stock, $10 par value Retained earnings. 108,133 162,500 155,663 Total liabilities and equity $ 563,898 $ 486,119 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 50,358 54,173 4,326 245,506 $ 393,300 $ 51,916 86,050 163,500 91,834 $ 393,300 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Express the balance sheets in common-size percents. Note: Do not round intermediate calculations and round your final percentage answers to 1 decimal pl SIMON COMPANY Common-Size Comparative Balance Sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses December 31 Current Year 1 Year Ago 2 Years Ago % % % Plant assets, net Total assets % % Liabilities and Equity Accounts payable % % % Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % Req 1 Req 2 and 3 > 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 anual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of totall assets favorable or unfavorable? 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