Simon Company's year-end balance sheets follow.

At December 31 Current Yr 1Yr Ago 2 Yrs Ago

Assets

Cash $31,051 $37,407 $38,194

Accounts receivable, net 91,833 64,166 49,907

Merchandise inventory 117,772 86,504 53,688

Prepaid expenses 10,408 9,430 4,371

Plant assets, net 285,970 265,453 239,640

Total assets $537,034 $462,960 $385,800

Liabilities and Equity

Accounts payable $135,059 $76,675 $50,926

Long-term notes payable secured by

mortgages on plant assets 103,991 104,351 86,114

Common stock, $10 par value 163,500 163,500 163,500

Retained earnings 134,484 118,434 85,260

Total liabilities and equity $537,034 $462,960 $385,800

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?

The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit:

For Year Ended December 31 Current Yr 1 Yr Ago

Sales $661,717 $522,177

Cost of goods sold $403,647 $339,415

Other operating expenses 205,132 132,111

Interest expense 11,249 12,010

Income tax expense 8,602 7,833

Total costs and expenses 628,630 491,369

Net income $33,087 $30,808

Earnings per share $2.04 $1.90

(1-a)Compute days' sales uncollected.

(1-b)For each ratio, determine if it improved or worsened in the current year.