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Simon Company's year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $29,894$ $ $33,925$ $ $34,985$

Accounts receivable, net $84,95961,15048,075$

Merchandise inventory $103,64779,23750,181$

Prepaid expenses $9,1599,0834,006$

Plant assets, net $264,258240,671223,353$

Total assets $ $491,917$ $ $424,066$ $ $360,600$

Liabilities and Equity

Accounts payable $ $120,038$ $ $70,234$ $ $48,075$

Long$-$term notes payable $92,48096,56078,896$

Common stock, $$10$ par value $163,500162,500162,500$

Retained earnings $115,89994,77271,129$

Total liabilities and equity $ $491,917$ $ $424,066$ $ $360,600$

For both the current year and one year ago, compute the following ratios:

Express the balance sheets in common$-$size percents.

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?

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?