Xavier Company's year-end balance sheet follow (in thousands). At December 31 Current Prior Year Year Assets Cash......... 55 50 Accounts receivable, net... 10 Merchandise inventory.. 5 1210 Prepaid expenses........ 1.5 2.1 Property, plant and equipment, net 60 55 Total assets 131.5 137.1 Liabilities and Equity Accounts payable........... 24 24 26 26 Long-term notes payable secured by mortgages on property, plant and equipment 30 40 Share capital, $10 par value.. 20 20 20 Retained earnings 57.5 51.1 Total liabilities and equity.. 131.5 137.1 Required: i. Express the balance sheet in common-size percents; round percents to two decimals. (10 marks) ii. Assuming annual sales doesn't change over the two-year period, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? Explain why. (3 marks) iii. Compute the current ratio for both years. Did the current ratio improve or worsen over the two-year period? What is the implication of this change? (7 marks)