Simon Company's year-end balance sheets follow. At December 31 Assets 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 27,804 $ 33,826 $ 34,200 83,050 56,875 47,461 102,352 77,457 49,054 8,954 8,879 3,916 258,706 237,503 217,869 $ 480,866 $ 414,540 $ 352,500 $ 123,328 $ 72,159 $ 46,530 91,307 163,500 102,731 94,391 76,344 163,500 163,500 84,490 66,126 $ 480,866 $ 414,540 $ 352,500 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?