Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 35,571 105, 157 132,215 11,684 318, 269 $ 602,896 $ 41,579 $ 42,462 71,308 56,616 96,152 60,308 11,133 4,672 299,566 256,442 $ 519,738 $ 420,500 $ 150, 121 $ 88,714 $ 56,616 114,478 163,500 174,797 $ 602,896 123, 126 91,072 163,500 163,500 144,398 109,312 $ 519,738 $ 420,500 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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? Reg 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not round intermediate cal answers to 1 decimal place.) 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 secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity % % % % % % Assuming annual sales have not changed in the last three years, is the change in accounts recei assets favorable or unfavorable? Assuming annual sales have not changed in the last three years, is the change in merchandise i total assets favorable or unfavorable? 2. Change in accounts receivable Change in merchandise inventory 3