Required information$[$The following information applies to the questions displayed below.$]$Simon Company's year$-$end balance sheets follow.At December $31$Current Year$1$ Year Ago$2$ Years AgoAssetsCash$ $33,195$$ $39,586$$ $42,481$Accounts receivable, net$96,20968,58956,641$Merchandise inventory$123,40991,54259\mathrm{.}749$Prepaid expenses$10,58210,1854,491$Plant assets, net$304,915280,020253,238$Total assets$ $568,310$$ $489,922$$ $416,600$Liabilities and EquityAccounts payable$ $141,509$$ $81,969$$$56,641$Long$-$term notes payable$108,979116,06392,069$Common stock, $$10$ par value$162,500162,500162,500$Retained earnings$155,322129,390105,390$Total liabilities and equity$ $568,310$$ $489,922$$ $416,600$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