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

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

Assets

Cash $ $31,800$ $ $35,625$ $ $37,800$

Accounts receivable, net $89,50062,50050,200$

Merchandise inventory $112,50082,50054,000$

Prepaid expenses $10,7009,3755,000$

Plant assets, net $278,500255,000230,500$

Total assets $ $523,000$ $ $445,000$ $ $377,500$

Liabilities and Equity

Accounts payable $ $129,900$ $ $75,250$ $ $51,250$

Long$-$term notes payable $98,500101,50083,500$

Common stock, $$10$ par value $163,500163,500163,500$

Retained earnings $131,100104,75079,250$

Total liabilities and equity $ $523,000$ $ $445,000$ $ $377,500$

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?!

Required information

$[$The following information applies to the questions displayed below.$]$

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

$\backslash$table$[[$At December $31,$Current Year,$1$ Year Ago,$2$ Years Ago$],[$Assets$,,,],[$Cash$,$$$31,800,$$$35,625,$$$37,800$