Simon Company’s year-end balance sheets follow.

(1) Express the balance sheets in common-size percents. Round percents to one decimal.

(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) Is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?

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2 Yrs Ago At December 31 Current Yr 1 Yr Ago Assets $ 31,800 $ 35,625 $ 37,800 Cash.... Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory.. Prepaid expenses.. Plant assets, net. Total assets .. 82,500 112,500 54,000 10,700 9,375 5,000 278,500 230,500 255,000 $523,000 $445,000 $377,500 Llabilities and Equilty Accounts payable.. $ 75,250 $ 51,250 $129,900 Long-term notes payable secured by mortgages on plant assets 101,500 98,500 83,500 Common stock, $10 par value. 163,500 163,500 163,500 Retained earnings.... 131,100 104,750 79,250 Total liabilities and equity. $523,000 $445,000 $377,500