Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	29,563		$	35,248		$	35,989
Accounts receivable, net			87,397			58,660			47,045
Merchandise inventory			106,653			78,314			51,621
Prepaid expenses			9,235			9,343			3,881
Plant assets, net			268,222			250,392			217,864
Total assets		$	501,070		$	431,957		$	356,400
Liabilities and Equity
Accounts payable		$	126,014		$	70,811		$	47,515
Long-term notes payable secured by mortgages on plant assets			96,085			101,337			80,340
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			115,471			96,309			65,045
Total liabilities and equity		$	501,070		$	431,957		$	356,400

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?

SIMON COMPANY
Common-Size Comparative Balance Sheets
December 31
	Current Year		1 Year Ago		2 Years Ago
Assets
Cash	not attempted	%	not attempted	%	not attempted	%
Accounts receivable, net	not attempted		not attempted		not attempted
Merchandise inventory	not attempted		not attempted		not attempted
Prepaid expenses	not attempted		not attempted		not attempted
Plant assets, net	not attempted		not attempted		not attempted
Total assets	not attempted	%	not attempted	%	not attempted	%
Liabilities and Equity
Accounts payable	not attempted	%	not attempted	%	not attempted	%
Long-term notes payable secured by mortgages on plant assets	not attempted		not attempted		not attempted
Common stock, $10 par	not attempted		not attempted		not attempted
Retained earnings	not attempted		not attempted		not attempted
Total liabilities and equity	not attempted	%	not attempted	%	not attempted	%