Years Ago 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 Current Year 1 Year Ago Assets Cash $ 28,032 $ 33,436 Accounts receivable, net 83, 734 58,513 Merchandise inventory 101, 110 75,774 Prepaid expenses 9,304 8,689 Plant assets, net 262,642 241,538 Total assets $ 484,822 $ 417,950 Liabilities and Equity Accounts payable $ 119,513 $ 69,927 Long-term notes payable 92,969 95, 167 Common stock, $10 par value 162,5ee 162,500 Retained earnings 189,840 99,356 Total liabilities and equity $ 484,822 $ 417,950 $ 36, 240 45,975 49,962 3,988 219,235 $ 355,480 $ 46,444 76,973 163,580 68,483 $ 355,400 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 ----IL-L-------- -------- ---------- ------------------ ... Required information Complete this question by entering your answers in the tabs below. Req1 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.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash 28,032.0 X % % Accounts receivable, net 83,734.0 X Merchandise inventory 101,110.0 Prepaid expenses 9,304.0 Plant assets, net 262,634.0 X Total assets 96 96 % Liabilities and Equity Accounts payable 96 96 96 Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity 96 996 % RO Re2 and 2 Complete this question by entering your answers in the tabs below. Reg 1 Req 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