Current Year 1 Year Ago 2 Years Ago $ 35,677 64,366 85,055 $ 31,780 91,197 111,223 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 9,930 289,187 $ 533,317 9,462 265,196 $459,756 $ 76,145 103,629 162,500 117,482 Long-term notes payable. $ 130,140 102,269 Common stock, $10 par value Retained earnings 163,500 137,408 Total liabilities and equity $ 533,317 $ 459,756 For both the current year and one year ago, compute the following ratios: $ 39,462 49,551 54,404 4,172 239,411 $ 387,000 $ 50,062 84,672 162,500 89,766 $ 387,000 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 favourable or unfavourable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favourable or unfavourable?