[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-5ize percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts recelvable 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? SIMON COMPANY Common-Size Comparative Balance Sheets December 31 \begin{tabular}{|l|l|l|l|l|l|l|} \hline & Current Year & \multicolumn{1}{|c|}{ Year Ago } & 2 Years Ago \\ \hline Assets & & & & & \\ \hline Cash & & % & & % & & % \\ \hline Accounts receivable, net & & & & & \\ \hline Merchandise inventory & & & & & \\ \hline Prepaid expenses & & & & & & \\ \hline Plant assets, net & & % & & % & & % \\ \hline Total assets & & & & & & \\ \hline Liabilities and Equity & & % & & % & & % \\ \hline Accounts payable & & & & & \\ \hline Long-term notes payable & & & & & \\ \hline Common stock, \$10 par & & & & & % \\ \hline Retained earnings & & % & & % \\ \hline Total liabilities and equity & & & & & \\ \hline \end{tabular}