Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	29,331		$	34,285		$	33,956
Accounts receivable, net			83,326			58,217			48,075
Merchandise inventory			105,825			76,144			49,207
Prepaid expenses			9,071			9,089			3,890
Plant assets, net			264,658			246,585			218,472
Total assets		$	492,211		$	424,320		$	353,600
Liabilities and Equity
Accounts payable		$	120,109		$	69,559		$	47,142
Long-term notes payable secured by mortgages on plant assets			90,685			98,570			78,927
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			117,917			92,691			64,031
Total liabilities and equity		$	492,211		$	424,320		$	353,600

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?

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?

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