Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	36,630		$	41,533		$	43,718
Accounts receivable, net			107,228			74,181			58,874
Merchandise inventory			130,814			100,006			60,826
Prepaid expenses			12,150			11,352			4,712
Plant assets, net			334,032			308,147			273,470
Total assets		$	620,854		$	535,219		$	441,600
Liabilities and Equity
Accounts payable		$	151,501		$	90,452		$	57,125
Long-term notes payable secured by mortgages on plant assets			113,219			120,638			99,545
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			192,634			160,629			121,430
Total liabilities and equity		$	620,854		$	535,219		$	441,600

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?