3 2 points eBook Hint Print References Required information. [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 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago $ 27,477 78,059 $31,800 $31,520 56,763 42,451 99,136 72,066 46,124 8,598 3,608 8,848 247,578 228,271 197,897 $ 461,098 $397,498 $ 321,600 $112,517 $ 67,849 $ 43,300 93,253 71,784 84,086 163,500 162,500 163,500 100,995 $461,098 73,896 43,016 $ 397,498 $ 321,600 Check my work 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. Req 1 Req 2 and 3