Use the following information for the Exercises below. (Algo) [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 $ 32,296 $ 39,308 $ 39,324 98,429 66,746 118,903 91,800 55,135 58,730 10,937 10,012 4,640 278,620 251,671 $409,500 Common stock, $10 par value Long-term notes payable. Retained earnings Total liabilities and equity 303,759 $564,324 $ 139,112 102,910 $ 486,486 162,500 163,500 158,802 132,641 $ 564,324 $ 486,486 $ 80,572 110,773 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. $ 54,595 89,595 162,500 102,810 $ 409,500 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of totam 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 to assets favorable or unfavorable? Complete this question by entering your answers in the tabs below.