[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 $ 34,913 97,258 122,284 $ 30,829 70,030 $ 40,066 88,875 10,588 309,464 $ 574,507 10, 193 287,338 $495,265 52,363 56,899 4,275 247,097 $ 400,700 $ 52,363 87,669 163,500 97,168 $ 143,052 Long-term notes payable Common stock, $10 par value: 104,767 163,500 $82,863 111,633 162,500 Retained earnings 163,188 138,269 Total liabilities and equity $ 574,507 $495,265 $ 400,700 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? Complete this question by entering your answers in the tabs below.