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Use the following information for the Exercises below. (Algo)

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Simon Company's year-end balance sheets follow.

At December 31Current Year1 Year Ago2 Years AgoAssets Cash$ 34,718$ 40,991$ 43,580Accounts receivable, net100,62271,73557,525Merchandise inventory127,79197,63661,883Prepaid expenses11,40610,8684,939Plant assets, net319,839291,163272,273Total assets$ 594,376$ 512,393$ 440,200Liabilities and Equity Accounts payable$ 143,560$ 88,326$ 59,269Long-term notes payable110,625114,31599,230Common stock, $10 par value163,500163,500162,500Retained earnings176,691146,252119,201Total liabilities and equity$ 594,376$ 512,393$ 440,200

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

Exercise 17-6 (Algo) Common-size percents LO P2

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?