Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets \begin{tabular}{|lrrr|} \hline Cash & $31,800 & $35,625 & $37,800 \\ \hline Accounts receivable, net & 89,500 & 62,500 & 50,200 \\ \hline Merchandise inventory & 112,500 & 82,500 & 54,000 \\ \hline Prepaid expenses & 10,700 & 9,375 & 5,000 \\ \hline Plant assets, net & 278,500 & 255,000 & 230,500 \\ \hline Total assets & $523,000 & $445,000 & $377,500 \\ \hline \end{tabular} Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity \begin{tabular}{rrr} $129,900 & $75,250 & $51,250 \\ 98,500 & 101,500 & 83,500 \\ 163,500 & 163,500 & 163,500 \\ 131,100 & 104,750 & 79,250 \\ \hline$523,000 & $445,000 & $377,500 \\ \hline \end{tabular} (Use cells A4 to D17 from the given information to complete this question.) SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash Accounts receivable, net 31 Merchandise inventory 32 Prepaid expenses 33 Plant assets, net 34 Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par Retained earnings Total liabilities and equity 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