Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	33,029		$	37,827		$	40,614
Accounts receivable, net			98,628			67,563			53,621
Merchandise inventory			120,358			91,083			57,684
Prepaid expenses			10,851			10,237			4,380
Plant assets, net			302,595			280,756			245,901
Total assets		$	565,461		$	487,466		$	402,200
Liabilities and Equity
Accounts payable		$	137,984		$	81,558		$	53,090
Long-term notes payable secured by mortgages on plant assets			105,244			110,996			87,108
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			158,733			131,412			98,502
Total liabilities and equity		$	565,461		$	487,466		$	402,200

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?

Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)

SIMON COMPANY
Common-Size Comparative Balance Sheets
December 31
	Current Year		1 Year Ago		2 Years Ago
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
Retained earnings
Total liabilities and equity		%		%		%