$[$The following information applies to the questions displayed below.$]$

Simon Company's year$-$end balance sheets follow.

At December $31$ Current Year $1$ Year Ago $2$ Years Ago

Assets

Cash $ $33,195$ $ $39,586$ $ $42,481$

Accounts receivable, net $96,20968,58956,641$

Merchandise inventory $123,40991,54259,749$

Prepaid expenses $10,58210,1854,491$

Plant assets, net $304,915280,020253,238$

Total assets $ $568,310$ $ $489,922$ $ $416,600$

Liabilities and Equity

Accounts payable $ $141,509$ $ $81,969$ $ $56,641$

Long$-$term notes payable $108,979116,06392,069$

Common stock, $$10$ par value $162,500162,500162,500$

Retained earnings $155,322129,390105,390$

Total liabilities and equity $ $568,310$ $ $489,922$ $ $416,600$

For both the current year and one year ago, compute the following ratios:

Express the balance sheets in common$-$size percents.

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?