Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	29,888		$	33,889		$	37,120
Accounts receivable, net			86,626			61,751			47,553
Merchandise inventory			108,915			83,215			52,721
Prepaid expenses			9,914			8,896			3,963
Plant assets, net			271,239			248,958			226,243
Total assets		$	506,582		$	436,709		$	367,600
Liabilities and Equity
Accounts payable		$	123,616		$	73,804		$	48,523
Long-term notes payable secured by mortgages on plant assets			97,142			97,430			81,240
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			122,324			101,975			74,337
Total liabilities and equity		$	506,582		$	436,709		$	367,600

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?