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	$ 26,897	$ 31,440	$ 33,421
Accounts receivable, net	78,750	55,581	45,012
Merchandise inventory	101,014	75,672	49,390
Prepaid expenses	8,750	8,253	3,751
Plant assets, net	249,768	230,070	209,426
Total assets	$ 465,179	$ 401,016	$ 341,000
Liabilities and Equity
Accounts payable	$ 113,513	$ 69,127	$ 45,462
Long-term notes payable	84,830	90,389	74,607
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	104,336	79,000	58,431
Total liabilities and equity	$ 465,179	$ 401,016	$ 341,000

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 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?