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?

Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 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 $ 30,979 87,093 115,147 10,076 281, 770 $ 525,065 $ 36,573 64,637 85,414 9,601 256,417 $ 452, 642 $ 38,486 52,331 55, 749 4,234 234,100 $ 384,900 $ 133, 356 101,674 162,500 127,535 $ 525,065 $ 78,026 106,190 163,500 104,926 $ 452, 642 $ 52,331 85,914 163,500 83, 155 $ 384,900 For both the current year and one year ago, compute the following ratios