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

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

Assets

Cash $ $26,072$ $ $30,777$ $ $31,117$

Accounts receivable, net $75,56452,27640,668$

Merchandise inventory $94,06771,17344,190$

Prepaid expenses $8,0647,7623,389$

Plant assets, net $233,755215,186191,836$

Total assets $ $437,522$ $ $377,174$ $ $311,200$

Liabilities and Equity

Accounts payable $ $106,764$ $ $64,380$ $ $41,900$

Long$-$term notes payable $83,89987,61866,712$

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

Retained earnings $83,35961,67640,088$

Total liabilities and equity $ $437,522$ $ $377,174$ $ $311,200$

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?