$[$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 $ $25,460$ $ $30,368$ $ $31,627$

Accounts receivable, net $73,79153,14441,756$

Merchandise inventory $96,56568,82144,474$

Prepaid expenses $8,4507,8123,376$

Plant assets, net $236,068219,453191,967$

Total assets $ $440,334$ $ $379,598$ $ $313,200$

Liabilities and Equity

Accounts payable $ $109,643$ $ $65,435$ $ $42,169$

Long$-$term notes payable $80,29989,05469,909$

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

Retained earnings $87,89262,60938,622$

Total liabilities and equity $ $440,334$ $ $379,598$ $ $313,200$

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

$1.$ Express the balance sheets in common$-$size percents.

$2.$ Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favourable or unfavourable?

$3.$ Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favourable or unfavourable?