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 $ $33,519$ $ $39,180$ $ $42,917$

Accounts receivable, net $99,15072,10055,539$

Merchandise inventory $128,44193,40761,557$

Prepaid expenses $11,23910,8154,815$

Plant assets, net $313,335289,398260,172$

Total assets $ $585,684$ $ $504,900$ $ $425,000$

Liabilities and Equity

Accounts payable $ $145,835$ $ $84,475$ $ $57,783$

Long$-$term notes payable $109,008119,61192,047$

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

Retained earnings $168,341137,314112,670$

Total liabilities and equity $ $585,684$ $ $504,900$ $ $425,000$

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?