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

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

Assets

Cash $ $23,992$ $ $27,761$ $ $30,107$

Accounts receivable, net $70,94048,58240,143$

Merchandise inventory $90,96065,50743,611$

Prepaid expenses $7,8047,5853,279$

Plant assets, net $217,053204,659183,960$

Total assets $ $410,749$ $ $354,094$ $ $301,100$

Liabilities and Equity

Accounts payable $ $102,277$ $ $60,440$ $ $39,348$

Long$-$term notes payable $77,99379,81364,547$

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

Retained earnings $66,97950,34133,705$

Total liabilities and equity $ $410,749$ $ $354,094$ $ $301,100$

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?Complete this question by entering your answers in the tabs below.

Req $1$Req $2$ and $3$

Express the balance sheets in common$-$size percents.

Note: Do not round intermediate calculations and round your final percentage answers to $1$ decimal place.

SIMON COMPANY

Common$-$Size Comparative Balance Sheets

December $31$

Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $\%\%\%$

Accounts receivable, net

Merchandise inventory

Prepaid expenses

Plant assets, net

Total assets $\%\%\%$

Liabilities and Equity

Accounts payable $\%\%\%$

Long$-$term notes payable

Common stock, $$10$ par

Retained earnings

Total liabilities and equity $\%\%\%$