Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 35,180 99,964 $ 40,719 $ 41,576 69,142 55,434 128,199 11,440 309,799 $ 584,582 $ 503,950 $ 148,472 Long-term notes payable Common stock, $10 par value Retained earnings 111,000 163,500 161,610 $ 85,168 115,909 163,500 139,373 92,298 10,477 291,314 $ 424,200 $ 54,875 95,623 163,500 110,202 61,441 4,806 260,943 Total liabilities and equity $ 584,582 $ 503,950 $ 424,200 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 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?