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. Current Year 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,967 97,498 122,585 11,950 306,063 $ 578,163 1 Year Ao $ 38,928 69,501 92,750 19,425 279,916 5491,520 $ 41,767 53,527 58,745 4,415 251,146 $ 489,600 $ 140,551 187, 191 163,500 158,921 $570,163 $ 82,236 113,050 162,50 133, 734 $ 491,520 54,608 91,427 162,500 101,065 5 409,680 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? Req 1 Req 2 and 3 Express the balance sheets in common-size percents. (Do not round Intermediate calculations and round your final percentage answers to 1 decimal place.) 2 Years Ago % SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago Assets Cash % % Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets % % Liabilities and Equity Accounts payable % % Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity % % % % % 3 Regi Req 2 and 3 > Prey 1 of 1 Next Reg 1 Reg 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? Show less ---- 2. Change in accounts receivable 3. Change in merchandise inventory