Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	31,570		$	37,640		$	38,817
Accounts receivable, net			90,585			65,871			50,233
Merchandise inventory			116,194			87,897			52,947
Prepaid expenses			9,963			9,590			4,144
Plant assets, net			286,773			260,282			238,259
Total assets		$	535,085		$	461,280		$	384,400

Liabilities and Equity
Accounts payable		$	134,569		$	76,397		$	51,756
Long-term notes payable secured by mortgages on plant assets			99,590			105,033			84,952
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			137,426			116,350			84,192
Total liabilities and equity		$	535,085		$	461,280		$	384,400

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?

Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.)

SIMON COMPANY
Common-Size Comparative Balance Sheets
December 31
	Current Year		1 Year Ago		2 Years Ago
Assets
Cash		%		%		%
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets		%		%		%
Liabilities and Equity
Accounts payable		%		%		%
Long-term notes payable secured by mortgages on plant assets
Common stock, $10 par
Retained earnings
Total liabilities and equity		%		%		%

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? 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?

2.	Change in accounts receivable
3.	Change in merchandise inventory