Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Current Yr 1 Yr Ago 2 Yrs Ago $ 30,534 $ 36,051 $ 39,075 90,283 114,638 9,734 61,197 83,369 9,653 50,077 55,503 4,300 234,245 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 277,557 $ 522,746 $ 127,560 100,242 163,500 131,444 260,373 $ 450,643 $ 383,200 $ 74,635 $ 50,077 101,575 82,993 163,500 110,933 163,500 86,630 $ 522,746 $ 450,643 $ 383,200 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?