please explain with steps

! Required information [The following information applies to the questions displayed below.) 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 $ 32,458 89,506 117, 130 10,47 284,968 $ 534,109 $ 37,940 63, 172 85,181 9,959 264,187 5460,439 $ 37,986 51, 150 53,946 4,137 232,681 $ 379,900 136,983 102,421 163,500 131,205 5.534,109 $ 80,149 109,078 163,500 107,212 $ 460, 439 50,147 BS, 637 163,500 80,616 $ 379,900 For both the current year and one year ago, compute the following ratios 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 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 ent year and one year ago, compute the following ratios. 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 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 % % 5 Accounts receivable, not Merchandise inventory Prepaid expenses Plant assets.net Total assets Liabilities and Equity Accounts payable % % Long term notes payable Common stock 510 par Retained earning Total abilities and equity Req2 and 3 > pay Long-ters notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 136,985 102,421 163, see 131,205 $ 534,109 $ 80,149 109,078 163,500 107, 712 $ 460,439 $ 50,147 85,637 163, see 80,616 $ 379,900 For both the current year and one year ago, compute the following ratios 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 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 marchandhe inventory