Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	35,793		$	41,420		$	44,000
Accounts receivable, net			104,775			73,217			58,667
Merchandise inventory			134,344			93,848			60,048
Prepaid expenses			11,872			10,873			4,652
Plant assets, net			319,870			303,620			264,133
Total assets		$	606,654		$	522,978		$	431,500
Liabilities and Equity
Accounts payable		$	154,078		$	90,151		$	56,958
Long-term notes payable secured by mortgages on plant assets			114,051			119,082			94,408
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			175,025			150,245			116,634
Total liabilities and equity		$	606,654		$	522,978		$	431,500

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?