Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 25,294	$ 29,277	$ 29,893
Accounts receivable, net	73,311	50,728	40,663
Merchandise inventory	89,464	67,033	43,743
Prepaid expenses	8,066	7,533	3,355
Plant assets, net	224,179	207,769	187,346
Total assets	$ 420,314	$ 362,340	$ 305,000
Liabilities and Equity
Accounts payable	$ 105,705	$ 60,011	$ 41,468
Long-term notes payable	80,599	85,005	66,057
Common stock, $10 par value	163,500	162,500	163,500
Retained earnings	70,510	54,824	33,975
Total liabilities and equity	$ 420,314	$ 362,340	$ 305,000

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?