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

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

Assets

Cash $ $34,719$ $ $42,239$ $ $41,461$

Accounts receivable, net $100,62571,02054,176$

Merchandise inventory $132,97294,80559,470$

Prepaid expenses $11,29511,0884,515$

Plant assets, net $320,848298,485259,178$

Total assets $ $600,459$ $ $517,637$ $ $418,800$

Liabilities and Equity

Accounts payable $ $154,000$ $ $88,355$ $ $55,834$

Long$-$term notes payable $114,015120,24792,555$

Common stock, $$10$ par value $162,500163,500163,500$

Retained earnings $169,944145,535106,911$

Total liabilities and equity $ $600,459$ $ $517,637$ $ $418,800$

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?