Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	36,631		$	42,399		$	43,291
Accounts receivable, net			105,128			72,729			57,138
Merchandise inventory			130,870			98,048			63,976
Prepaid expenses			11,681			11,240			4,810
Plant assets, net			324,388			300,324			272,485
Total assets		$	608,698		$	524,740		$	441,700
Liabilities and Equity
Accounts payable		$	147,019		$	91,341		$	57,138
Long-term notes payable secured by mortgages on plant assets			116,724			124,311			100,544
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			181,455			145,588			120,518
Total liabilities and equity		$	608,698		$	524,740		$	441,700

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?