Simon Company's year-end balance sheets follow. At December 31 Assets Current Yr 1 Yr Ago 2 Yrs Ago $ 24,221 $ 28,598 $ 30,087 70,908 50,546 88,261 38,527 44,010 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 68,116 8,115 7,432 3,310 223,159 202,777 184,966 $414,664 $357,469 $300,900 $103,251 $ 61,621 $ 38,924 78,736 80,574 68,494 163,500 163,500 163,500 69,177 $414,664 51,774 29,982 $357,469 $300,900 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 2. 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? 3. 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?