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

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

Assets

Cash $ $33,232$ $ $39,242$ $ $41,286$

Accounts receivable, net $98,28369,36756,138$

Merchandise inventory $123,57391,66458,045$

Prepaid expenses $11,13910,3014,587$

Plant assets, net $308,530284,906252,844$

Total assets $ $574,757$ $ $495,480$ $ $412,900$

Liabilities and Equity

Accounts payable $ $145,977$ $ $85,411$ $ $55,048$

Long$-$term notes payable $105,893115,10093,076$

Common stock, $$10$ par value $162,500162,500163,500$

Retained earnings $160,387132,469101,276$

Total liabilities and equity $ $574,757$ $ $495,480$ $ $412,900$

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?