Exercise 13-6 Common-size percents LO P2 Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 26,109 $ 30,213 $ 30,528 Accounts receivable, net 75,670 52,339 41,543 Merchandise inventory 95,141 69,868 44,239 Prepaid expenses 8,240 7,931 3,462 Plant assets, net 237,357 221,129 198,128 Total assets $ 442,517 $ 381,480 $ 317,900 Liabilities and Equity Accounts payable $ 111,289 $ 65,115 $ 41,963 Long-term notes payable secured by mortgages on plant assets 81,529 89,495 68,851 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 86,199 63,370 43,586 Total liabilities and equity $ 442,517 $ 381,480 $ 317,900 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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?