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In: Accounting

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs...

Simon Company's year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 36,630 $ 41,533 $ 43,718
Accounts receivable, net 107,228 74,181 58,874
Merchandise inventory 130,814 100,006 60,826
Prepaid expenses 12,150 11,352 4,712
Plant assets, net 334,032 308,147 273,470
Total assets $ 620,854 $ 535,219 $ 441,600
Liabilities and Equity
Accounts payable $ 151,501 $ 90,452 $ 57,125
Long-term notes payable secured by
mortgages on plant assets
113,219 120,638 99,545
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 192,634 160,629 121,430
Total liabilities and equity $ 620,854 $ 535,219 $ 441,600


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?

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