Required information. [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago 88,077 $31,635 89,853 $ 36,978 65,358 $ 38,527 50,845 115,279 9,984 289,429 9,901 261,910 $462,224 $ 536,180 $ 80,459 106,312 163,500 55,260 4,324 248,144 $ 397,100 $ 50,845 86,004 163,500 96,751 Accounts payable $ 130,839 Long-term notes payable. 97,778 Common stock, $10 par value 162,500 Retained earnings 145,063 Total liabilities and equity $ 536,180 111,953 $462,224 $ 397,100 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?