Use the following information for the Exercises below. $($Algo$)$

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

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

Assets

Cash $ $27,947$ $ $33,328$ $ $35,060$

Accounts receivable, net $80,18257,16944,914$

Merchandise inventory $100,81476,30847,823$

Prepaid expenses $8,9098,6623,781$

Plant assets, net $260,618237,007215,622$

Total assets $ $478,470$ $ $412,474$ $ $347,200$

Liabilities and Equity

Accounts payable $ $115,565$ $ $69,011$ $ $45,830$

Long$-$term notes payable $91,75192,97274,429$

Common stock, $$10$ par value $162,500162,500163,500$

Retained earnings $108,65487,99163,441$

Total liabilities and equity $ $478,470$ $ $412,474$ $ $347,200$

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

Exercise $13-6($Algo$)$ Common$-$size percents LO P$2$

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?