Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	25,712		$	29,447		$	30,067
Accounts receivable, net			74,520			53,658			40,916
Merchandise inventory			92,749			70,203			44,016
Prepaid expenses			8,280			7,730			3,444
Plant assets, net			238,932			218,439			194,657
Total assets		$	440,193		$	379,477		$	313,100
Liabilities and Equity
Accounts payable		$	107,416		$	62,849		$	42,569
Long-term notes payable secured by mortgages on plant assets			81,929			88,153			67,119
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			87,348			64,975			39,912
Total liabilities and equity		$	440,193		$	379,477		$	313,100

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?