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

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

Assets

Cash $ $25,256$ $ $30,435$ $ $32,027$

Accounts receivable, net $73,19952,72843,129$

Merchandise inventory $96,77869,67744,559$

Prepaid expenses $8,5538,1493,559$

Plant assets, net $237,520219,447200,226$

Total assets $ $441,306$ $ $380,436$ $ $323,500$

Liabilities and Equity

Accounts payable $ $107,687$ $ $66,222$ $ $42,702$

Long$-$term notes payable $82,96686,62570,064$

Common stock, $$10$ par value $163,500162,500163,500$

Retained earnings $87,15365,08947,234$

Total liabilities and equity $ $441,306$ $ $380,436$ $ $323,500$

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

Exercise $13-6($Algo$)$ Common$-$size percents LO P$2$

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?