Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 29,135 $ 36,162 $ 35,848 Accounts receivable, net 87,053 60,827 47,319 Merchandise inventory 106,169 80,378 51,418 Prepaid expenses 9,576 9,308 3,943 Plant assets, net 277,150 252,190 223,572 Total assets $ 509,083 $ 438,865 $ 362,100 Liabilities and Equity Accounts payable $ 125,494 $ 73,427 $ 46,841 Long-term notes payable secured by mortgages on plant assets 95,708 99,930 78,424 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 124,381 102,008 73,335 Total liabilities and equity $ 509,083 $ 438,865 $ 362,100 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?