Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 23,920	$ 28,246	$ 30,017
Accounts receivable, net	72,158	50,928	38,834
Merchandise inventory	88,056	67,298	41,350
Prepaid expenses	7,860	7,639	3,368
Plant assets, net	221,706	202,527	186,631
Total assets	$ 413,700	$ 356,638	$ 300,200
Liabilities and Equity
Accounts payable	$ 100,951	$ 59,066	$ 38,834
Long-term notes payable	77,776	82,847	67,008
Common stock, $10 par value	163,500	162,500	163,500
Retained earnings	71,473	52,225	30,858
Total liabilities and equity	$ 413,700	$ 356,638	$ 300,200

1. Express the balance sheets in common-size percents

2Assuming 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?

3Assuming 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?

Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings
Total liabilities and equity